# In the matter of Khairwala International Limited CA-855-C-III-2019 in CP-IB-1410-ND-2018

> NCLT judgment dated 2019-11-26. Citation: TCN-2019-NCLT-00444. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 26 Nov 2019
- **Citation:** TCN-2019-NCLT-00444
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khairwala-international-limited-ca-855-c-iii-2019-in-cp-ib-1410-nd-2018-51396889

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Khairwala International Limited. The CIRP was initiated following an application under Section 9 of the Insolvency and Bankruptcy Code (I&B Code), 2016. Mr. Amit Gupta was initially appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Harjeet Singh Rekhi was appointed as the Resolution Professional (RP). During the CIRP, it was found that the promoters of the Corporate Debtor were not traceable, and the latest financial information available was for the financial year 2016-17. The Committee of Creditors (CoC) was informed about the status of the Information Memorandum. The RP appointed registered valuers for various assets of the Corporate Debtor. It was

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Khairwala International Limited following an application under Section 9 of the I&B Code, 2016. Initially, Mr. Amit Gupta served as the Interim Resolution Professional (IRP), succeeded by Mr. Harjeet Singh Rekhi as the Resolution Professional (RP). During the CIRP, it was discovered that the promoters of the Corporate Debtor were untraceable, and the most recent financial records available were for the fiscal year 2016-17. The Committee of Creditors (CoC) was informed about the status of the Information Memorandum. The RP appointed registered valuers for the Corporate Debtor's assets. It was also revealed to the CoC that the Corporate Debtor had opened bank accounts without the Financial

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Khairwala International Limited, should be ordered for liquidation …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates that if no resolution

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received within the 180-day

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**Interpretation:** Section 33(2) is interpreted strictly to mean that the absence of a resolution

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**Application:** In this case, since no resolution plan was received for Khairwala International

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## Parties

- **Judges:** SHRI. CH. MOHD.…; SHRI. K.K.…
- **Appellants:** Harjeet Singh…
- **Respondents:** Khairwala…

## Timeline

- **2018-01-01 — Filing of App…**: IB/1410/ND/201…
- **2019-05-09 — Admission of Ap…**: Application under Section 9 of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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