# In the matter of JOSAN FOODS PRIVATE LIMITED

> NCLT judgment dated 2025-07-18. Citation: TCN-2025-NCLT-00781. An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Sandeep…

- **Court:** NCLT
- **Order date:** 18 Jul 2025
- **Citation:** TCN-2025-NCLT-00781
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/josan-foods-private-limited-dec2ec54

## Summary

### Background

An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Sandeep Kaur, Operational Creditor, against M/s Josan Foods Pvt. Ltd., Corporate Debtor. The petition was admitted on 20.07.2023, and Mr. Harsh Garg was appointed as Interim Resolution Professional (IRP).

## Facts

An insolvency petition was filed under Section 9 of the IBC by the Operational Creditor, Sandeep Kaur, against the Corporate Debtor, M/s Josan Foods Pvt. Ltd.

The petition was admitted on 20.07.2023, and Mr. Harsh Garg was appointed as Interim Resolution Professional (IRP).

The Committee of Creditors (CoC) comprised of sole financial creditor, State Bank of India.

Form G was published twice, but no Expression of Interest was received.

The CoC resolved for liquidation of the Corporate Debtor under Section 33 of the Code.

Mr. Mahesh Bansal, Resolution Professional, filed an application for liquidation under Section 33(2) of the IBC.

The suspended directors failed to provide the balance sheet as on the date of commencement of the CIRP.…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Josan Foods Private Limited, should be liquidated under Section 33 of …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

…

**Reasoning:** The CoC resolved for liquidation after no resolution plan was received despite publishing

…

**Interpretation:** The Adjudicating Authority interpreted Section 33 to allow for liquidation in

…

**Application:** The Adjudicating Authority applied Section 33 and directed the liquidation of

…

## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Sandeep…; Mahesh B…
- **Respondents:** M/s Josan Foods…
- **Other parties:** State Bank of…; Harsh…; +1 more
- **Advocates:** Viren S…

## Timeline

- **2023-07-20 — Admission of…**: The insolvency petition filed by Sandeep Kaur was admitted, and Mr. Harsh Garg was…
- **2023-09-05 — CoC Meet…**: The IRP placed the agenda for appointment…

## 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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