# In the matter of K.T.C. Foods Private Limited CA No. 387-2019 in CP (IB) No. 136-Chd-Hry-2018

> NCLT judgment dated 2019-05-31. Citation: TCN-2019-NCLT-03114. The case involves an application filed by the Resolution Professional of M/s. KTC Foods Private…

- **Court:** NCLT
- **Order date:** 31 May 2019
- **Citation:** TCN-2019-NCLT-03114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ktc-foods-private-limited-ca-no-387-2019-in-cp-ib-no-136-chd-hry-2018-2341f629

## Summary

### Background

The case involves an application filed by the Resolution Professional of M/s. KTC Foods Private Limited (Corporate Debtor) for an order requiring the corporate debtor to be liquidated. The petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 was filed by Ashok Kumar and Brother (Operational Creditor) for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The petition was admitted on 29.08.2018, and a moratorium was declared. Mr. Mast Ram was appointed as Interim Resolution Professional (IRP), later replaced by Mr. Anup Kumar Singh.

## Facts

Ashok Kumar and Brother, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against K.T.C. Foods Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 2018-08-29, and a moratorium was imposed. Mr. Mast Ram was initially appointed as the Interim Resolution Professional (IRP) but was later replaced by Mr. Anup Kumar Singh. Despite extending the period for submission of a resolution plan, no plan was received. The Committee of Creditors (COC) then resolved to liquidate the Corporate Debtor with 100% voting rights. The Resolution Professional, Mr. Anup Kumar Singh, consented to act as the Liquidator. Form G was published in multiple newspapers. The last date for receipt of

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## Issues and analysis

### Issue 1: Whether the corporate debtor, K.T.C. Foods Private Limited, should be liquidated due to the failure …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of

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**Reasoning:** The court reasoned that the last date for submission of a resolution plan had passed, and

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when a resolution plan is

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**Application:** In this case, the court applied Section 33(2) because no resolution plan was

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** Ashok Kumar and…
- **Respondents:** K.T.C. Foods…; M/s. K.T.C. Foods…

## Timeline

- **2018-08-29 — Admission of…**: The petition under Section 9 of the Code was…
- **2018-09-07 — Appointment…**: Mr. Mast Ram was appointed as…

## 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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