# In the matter Rama Krishna Knitters Private Limited CA No. 1172-2019 in CP (IB) No. 286-Chd-Pb-2018

> NCLT judgment dated 2019-12-24. Citation: TCN-2019-NCLT-00017. The case involves the corporate insolvency resolution process (CIRP) of Rama Krishna Knitters…

- **Court:** NCLT
- **Order date:** 24 Dec 2019
- **Citation:** TCN-2019-NCLT-00017
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/in-the-matter-rama-krishna-knitters-private-limited-ca-no-1172-2019-in-cp-ib-no-c462a31c

## Summary

### Background

The case involves the corporate insolvency resolution process (CIRP) of Rama Krishna Knitters Private Limited. Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the Adjudicating Authority. An Interim Resolution Professional (IRP) was appointed, and a Committee of Creditors (COC) was constituted. An invitation for Expression of Interest (EOI) was issued, but only one EOI was received in the prescribed format. The CIRP period was extended. A resolution plan was received from Swissline Intertrade Private Limited but was rejected by the COC with 99.85% votes. Consequently, a resolution was proposed to approve the liquidation of Rama Krishna under Section 33 of the Code, which was passed with 99.9%

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## Facts

Punjab National Bank initiated CIRP against Rama Krishna Knitters Private Limited under Section 7 of IBC. The application was admitted, and an IRP was appointed. The COC was formed, consisting of six financial creditors and one operational creditor. An EOI was issued, but only one EOI was received in the prescribed format. The CIRP period was extended by 90 days. Swissline Intertrade Private Limited submitted a resolution plan, which was rejected by the COC with 99.85% votes. Subsequently, the COC approved the liquidation of Rama Krishna with 99.9% votes. The COC determined that Rama Krishna could not be sold as a going concern. The COC also considered the fees payable to the Liquidator. The Adjudicating Authority then ordered the liquidation of Rama Krishna Knitters

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## Issues and analysis

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

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, states that where the

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**Reasoning:** The Adjudicating Authority reasoned that no resolution plan was received under Section

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**Interpretation:** Section 33(1)(a) mandates liquidation when no resolution plan is approved

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**Application:** Since no resolution plan was approved within the CIRP period, and the COC

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Punjab National…
- **Respondents:** Rama Krishna…; M/s. Rama Krishna…

## Timeline

- **2019-02-13 — Admission of Ap…**: Application under Section 7 of the Code filed by Punjab National Bank for initiation of…
- **2019-03-05 — Constitution…**: The Committee of Creditors (COC) was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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