# In the matter of Laxmivinayak Rice Mill Private Limited CP (IB) No. 331-KB-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01651. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01651
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/laxmivinayak-rice-mill-private-limited-cp-ib-no-331-kb-2017-00b3fb4d

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Reliance Commercial Finance Limited against Laxmivinayak Rice Mill Private Limited for initiating Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated, and Mr. Kanchan Dutta was appointed as the Insolvency Resolution Professional. However, the Resolution Professional failed to receive any resolution plan, and the Committee of Creditors (CoC) unanimously decided not to extend the CIRP beyond 180 days.

## Facts

Reliance Commercial Finance Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Laxmivinayak Rice Mill Private Limited. The application was admitted on September 19, 2017, and Mr. Kanchan Dutta was appointed as the Insolvency Resolution Professional (IRP). The CIRP period expired on March 17, 2018. The Resolution Professional (RP) reported that the Corporate Debtor did not provide necessary support and cooperation, including the submission of accounts and information required for preparing the Information Memorandum. The Committee of Creditors (CoC) held five meetings but decided not to extend the CIRP beyond 180 days due to the lack of a resolution plan. The RP

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor's failure to cooperate with the Resolution Professional and provide …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) mandates cooperation from the Corporate Debtor

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**Reasoning:** The court reasoned that the Corporate Debtor's non-cooperation prevented the preparation

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**Interpretation:** Section 19 of the I&B Code imposes a duty on the Corporate Debtor to

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**Application:** The Corporate Debtor failed to comply with directions under Section 19 of the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Reliance Commercia…
- **Respondents:** LAXMIVINAYAK RICE…
- **Advocates:** Arnab Basu…; Setu Da…; +1 more

## Timeline

- **2017-09-19 — Application A…**: Application under…
- **2018-03-17 — CIRP Exp…**: CIRP period e…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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