# In the matter of Karthik Niraman Pvt. Ltd. MA No. 1879-2019 in C.P. 1364-I&BP-2018

> NCLT judgment dated 2019-06-24. Citation: TCN-2019-NCLT-02808. The Corporate Insolvency Resolution Process (CIRP) was initiated against Karthik Nirman Pvt.…

- **Court:** NCLT
- **Order date:** 24 Jun 2019
- **Citation:** TCN-2019-NCLT-02808
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karthik-niraman-pvt-ltd-ma-no-1879-2019-in-cp-1364-ibp-2018-5f6bfdb7

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Karthik Nirman Pvt. Ltd. (Corporate Debtor) based on a Section 9 petition filed by the Operational Creditor, J. S. Enterprises. Ms. Jovita Reema Mathias was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). The RP made a public announcement on 20.06.2018, setting 02.07.2018 as the last date for submitting claims. Two registered valuers were appointed, and an Information Memorandum was prepared. The RP received a resolution plan from Mr. S. Ravichandran, a promoter director of the Corporate Debtor, but he was found to be ineligible under Section 29A(e) of the Code. Another resolution plan was received

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Karthik Nirman Pvt. Ltd. based on a Section 9 petition by J. S. Enterprises. Jovita Reema Mathias was appointed as IRP and later confirmed as RP. A public announcement was made on 20.06.2018, with a claim submission deadline of 02.07.2018. Two registered valuers were appointed. A resolution plan was received from Mr. S. Ravichandran, a promoter director, but he was ineligible under Section 29A(e). Another plan from Spark Group offered 1.50 crores against a claim of 290 crores, deemed insufficient despite collateral worth 3 crores. The CIRP period expired, leading the CoC to decide on liquidation with 100% voting. The RP complied with procedures, and the valuation report was undisputed. The

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of an approved resolution plan …

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

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**Reasoning:** The Adjudicating Authority observed that the CIRP period had expired, and no viable

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**Interpretation:** Section 33 provides a mechanism for liquidation when resolution efforts fail.

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**Application:** Since no resolution plan was approved within the stipulated time, and the CoC

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** J S Enter…
- **Respondents:** Karthik Nirman…

## Timeline

- **2018-06-13 — CIRP Init…**: The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate…
- **2018-06-20 — Public Annou…**: The Resolution Professional made a public announcement fixing 02.07.2018 as the last date…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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