# In the matter of Karuturi Global Ltd. I.A. No. 11 of 2021 in C.P. (IB) No. 216-BB-2018

> NCLT judgment dated 2021-01-25. Citation: TCN-2021-NCLT-03241. The case involves an application (I.A.No.11/2021) in C.P.(IB)No.216/BB/2018 filed by Mr.…

- **Court:** NCLT
- **Order date:** 25 Jan 2021
- **Citation:** TCN-2021-NCLT-03241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karuturi-global-ltd-ia-no-11-of-2021-in-cp-ib-no-216-bb-2018-7bcf7832

## Summary

### Background

The case involves an application (I.A.No.11/2021) in C.P.(IB)No.216/BB/2018 filed by Mr. Ghanshyam Das Mundra, the Erstwhile Resolution Professional of M/s. Karuturi Global Ltd., seeking to initiate the liquidation process of the Corporate Debtor. The initial Corporate Insolvency Resolution Process (CIRP) was initiated based on an application by Axis Bank Limited against Karuturi Global Limited. Despite efforts to find a resolution plan, none were approved by the Committee of Creditors (CoC).

## Facts

Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Karuturi Global Limited. The CIRP was admitted on 2019-08-02. Ghanshyam Das Mundra was appointed as the Interim Resolution Professional (IRP). During the CIRP, several resolution plans were submitted but none received the requisite votes for approval. The Committee of Creditors (CoC) authorized the RP to seek exclusion of a period of 60 days from the CIRP period due to a stay order. The CoC also agreed to put up to vote a resolution to liquidate the Corporate Debtor. The RP issued the Information Memorandum and Evaluation Matrix to all Prospective Resolution Applicants (PRAs). The last date for submission of resolution plans was notified as 2020-08-12. The CoC directed the RP to re-issue

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## Issues and analysis

### Issue 1: Whether the application for initiating liquidation of the Corporate Debtor should be approved in …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass an order for

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**Reasoning:** The court reasoned that despite best efforts, no resolution plan was approved by the CoC.

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**Interpretation:** Section 33(2) provides a clear directive for liquidation when resolution

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**Application:** Since no resolution plan was approved, the court applied Section 33(2) to order

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Ghanshyam Das…
- **Respondents:** Karuturi Global…

## Timeline

- **2018-01-01 — C.P.(IB)No.216…**: The initial Corporate Insolvency…
- **2019-08-02 — CIRP Admi…**: C.P.(IB)No.216/BB/2018 filed by M/s. Axis Bank Limited was admitted by the Adjudicating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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