# In the matter of Jalaram Cotton & Proteins Ltd. C.P. (I.B) No. 119-10-NCLT-AHM-2017

> NCLT judgment dated 2018-04-09. Citation: TCN-2018-NCLT-01573. The case involves an application filed by the resolution professional seeking an order for the…

- **Court:** NCLT
- **Order date:** 9 Apr 2018
- **Citation:** TCN-2018-NCLT-01573
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jalaram-cotton-proteins-ltd-cp-ib-no-119-10-nclt-ahm-2017-6d4a2469

## Summary

### Background

The case involves an application filed by the resolution professional seeking an order for the liquidation of Jalaram Cotton & Proteins Ltd., the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by Jalaram Cotton & Proteins Ltd. under section 10 of the Insolvency and Bankruptcy Code (IBC), and an Interim Resolution Professional (IRP) was appointed. The Committee of Creditors (COC) resolved in its third meeting on 2018-03-30 to recommend liquidation as no resolution plan was received.

## Facts

Jalaram Cotton & Proteins Ltd. (Corporate Debtor) filed a petition under Section 10 of the Insolvency and Bankruptcy Code (IBC), leading to the commencement of the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) was appointed. The Committee of Creditors (COC) held its third meeting on March 30, 2018, and resolved to recommend liquidation due to the absence of any resolution plan. The 180-day period for the CIRP was nearing completion, set to end on May 14, 2018. The resolution professional filed an application seeking an order for the liquidation of the Corporate Debtor. The COC members unanimously (100% voting) favored liquidation. The Adjudicating Authority considered the petition and the records annexed.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Jalaram …

**Ratio:** The Adjudicating Authority has the power to order liquidation when no resolution plan is

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**Reasoning:** The court reasoned that the COC's unanimous decision to recommend liquidation, coupled

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**Interpretation:** This interprets the IBC to mean that if no resolution plan is approved within

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**Application:** In this case, the COC unanimously voted for liquidation, and no resolution plan

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Respondents:** Jalaram Cotton &…
- **Advocates:** LAKIT M…; Lalit P…

## Timeline

- **2018-03-30 — COC Meet…**: The Committee of Creditors (COC) resolved to recommend liquidation as no resolution plan…
- **2018-04-09 — Order Da…**: The Adjudicating Authority ordered the liquidation of Jalaram Cotton & Proteins Ltd. and…

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