# In the matter of Emsons Organics Limited IA No. 560-2020 In CP (IB) No. 153-Chd-Pb-2019

> NCLT judgment dated 2020-12-15. Citation: TCN-2020-NCLT-00073. The case pertains to IA No. 560/2020 in CP (IB) No. 153/Chd/Pb/2019, an admitted matter under…

- **Court:** NCLT
- **Order date:** 15 Dec 2020
- **Citation:** TCN-2020-NCLT-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emsons-organics-limited-ia-no-560-2020-in-cp-ib-no-153-chd-pb-2019-70c4eee1

## Summary

### Background

The case pertains to IA No. 560/2020 in CP (IB) No. 153/Chd/Pb/2019, an admitted matter under Section 33(1) & (2) of the Insolvency and Bankruptcy Code, 2016. Parmod Sharma, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Emsons Organics Limited. The CIRP was admitted on 27.09.2019, and Ms. Taruna Goel was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Prem Chand Goyal replaced Ms. Goel as RP. Form-G was published on 11.12.2019, but no Expression of Interest (EOI) was received. The Adjudicating Authority granted an extension of the CIRP period. Despite receiving EOIs, no resolution plan was received. Consequently, the Committee of Creditors (COC) resolved to liquidate the corporate debtor.

## Facts

Parmod Sharma, an Operational Creditor, initiated CIRP against Emsons Organics Limited. The CIRP was admitted on 27.09.2019. Ms. Taruna Goel was initially appointed as IRP, later replaced by Mr. Prem Chand Goyal as RP on 30.10.2019. Form-G was published on 11.12.2019, but no Expression of Interest (EOI) was received initially. The Adjudicating Authority extended the CIRP period on 18.03.2020. EOIs were received, but no resolution plan materialized. The COC resolved to liquidate the corporate debtor in its 5th meeting. The application for liquidation was filed by the RP on 27.08.2020. The COC approved the estimated liquidation expenses of ₹13,85,000. Mr. Prem Chand Goyal was appointed as the Liquidator. The Adjudicating Authority considered the submissions and records

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## Issues and analysis

### Issue 1: Whether the conditions under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, are …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority noted that the Resolution Professional had intimated the

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the COC decides that a

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**Application:** In this case, the Resolution Professional informed the Adjudicating Authority

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Parmod S…
- **Respondents:** Emsons Organics…

## Timeline

- **2019-09-27 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP) was admitted against Emsons Organics…
- **2019-09-27 — Application under…**: Application under Section 9 of the Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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