# In the matter of Gulati Retail India Limited IA-2942-ND-2020 in Company Petition No. (IB)-1154(ND)-2019

> NCLT judgment dated 2020-08-31. Citation: TCN-2020-NCLT-00756. The case involves an application filed by Mr. Arun Chadha, the Resolution Professional of M/s…

- **Court:** NCLT
- **Order date:** 31 Aug 2020
- **Citation:** TCN-2020-NCLT-00756
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gulati-retail-india-limited-ia-2942-nd-2020-in-company-petition-no-ib-1154nd-201-62e192b0

## Summary

### Background

The case involves an application filed by Mr. Arun Chadha, the Resolution Professional of M/s Gulati Retail India Limited, under Section 33(2) of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of liquidation process for the Corporate Debtor. The Corporate Debtor, M/s Gulati Retail India Limited, had initially filed an application under Section 10 of the Code for initiating its Corporate Insolvency Resolution Process (CIRP). This application was admitted by the Tribunal, and Mr. Arun Chadha was appointed as the Interim Resolution Professional (IRP).

## Facts

M/s Gulati Retail India Limited, the Corporate Debtor, initiated Corporate Insolvency Resolution Process (CIRP) by filing an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted, and Mr. Arun Chadha was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was constituted, comprising ICICI Bank, Punjab & Sind Bank. The IRP was later confirmed as the Resolution Professional (RP). The CoC held several meetings to decide on the publication of the Expression of Interest (EOI), but no resolution was passed. The CoC eventually resolved to initiate the liquidation process of the Corporate Debtor. Mr. Arun Chadha also filed his written consent to act as Liquidator. The public

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## Issues and analysis

### Issue 1: Whether the application for initiation of liquidation process of the Corporate Debtor, M/s Gulati …

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

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**Reasoning:** The Committee of Creditors (CoC) resolved to initiate the liquidation process of the

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when the CoC

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**Application:** The CoC, representing 100% of the voting share, rejected the publication of EOI

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## Parties

- **Judges:** CH. MOHD SHARIEF…; SHRI. L. N.…
- **Respondents:** M/s. Gulati…

## Timeline

- **2019-07-30 — Application A…**: The Tribunal admitted the…
- **2019-07-30 — Appointment…**: Mr. Arun Chadha was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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