# In the matter of Kanakadhara Ventures Private Limited IA (IBC)-169-2021 in CP (IB) No. 745-7-HDB-2018

> NCLT judgment dated 2021-08-13. Citation: TCN-2021-NCLT-01335. IDBI Bank initiated Corporate Insolvency Resolution Process (CIRP) against Kanakadhara Ventures…

- **Court:** NCLT
- **Order date:** 13 Aug 2021
- **Citation:** TCN-2021-NCLT-01335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kanakadhara-ventures-private-limited-ia-ibc-169-2021-in-cp-ib-no-745-7-hdb-2018-220da697

## Summary

### Background

IDBI Bank initiated Corporate Insolvency Resolution Process (CIRP) against Kanakadhara Ventures Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2019-11-22, and Shri B Naga Bhushan was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC) and was later appointed as the Resolution Professional (RP). The RP published Form G to invite Expression of Interest (EOI) for resolution plans. Despite multiple attempts and extensions, no viable resolution plan was received. The CoC decided to pursue liquidation.

## Facts

IDBI Bank initiated CIRP against Kanakadhara Ventures Private Limited under Section 7 of IBC. The application was admitted on 2019-11-22, and Shri B Naga Bhushan was appointed as IRP. The IRP constituted CoC and was later appointed as RP. Form G was published to invite EOI for resolution plans. The last date for receipt of EOI was extended multiple times. Meizo Healthcare Private Limited (MHPL) submitted EOI. The CoC approved the Evaluation Matrix. The last date for submission of Resolution Plan was extended till 2020-04-21. MHPL submitted the Resolution Plan on 2020-09-17. The CoC members viewed the conditions of PRA on the release of personal guarantees and collaterals as unreasonable. The applicant published revised Form G. M/s Safebharat Enterprises Private Limited

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code mandates the initiation of

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**Reasoning:** The court reasoned that despite all possible steps taken during the Corporate Insolvency

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**Interpretation:** Section 33(1) is interpreted to mean that if a resolution plan is not approved,

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**Application:** In this case, since no resolution plan was approved despite multiple attempts,

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Respondents:** Kanakadhara…; Kanakadhara…

## Timeline

- **2018-01-01 — CP (IB) No. 745/7/HDB/20…**: The IDBI Bank limited, the Financial Creditor had filed an application under Section 7 of…
- **2019-11-22 — Admission of Ap…**: The application filed by IDBI Bank was admitted by the Tribunal, and Shri B Naga Bhushan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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