# In the matter of Madhusala Drinks Private Limited IA (IB) No. 504-KB-2021 in CP (IB) No. 932-KB-2018

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01496. The case involves an application filed by the Resolution Professional (RP) upon the…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/madhusala-drinks-private-limited-ia-ib-no-504-kb-2021-in-cp-ib-no-932-kb-2018-34e1ae2b

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) upon the instructions of the Committee of Creditors (CoC) seeking liquidation of Madhusala Drinks Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by State Bank of India under section 7 of the Insolvency and Bankruptcy Code, 2016. Jitendra Lohia was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Despite several extensions for submission of a resolution plan, none were received, leading the CoC to resolve for liquidation.

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Madhusala Drinks Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition on 2019-08-26. Jitendra Lohia was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcement was made on 2019-08-28, with a deadline of 2019-09-09 for submitting claims. The Committee of Creditors (CoC) was constituted with two financial creditors. The first CoC meeting was held on 2019-09-19, where the RP was appointed. Invitations for Expression of Interest (EOI) were published multiple times, with the last date for submission being 2021-03-05. Three EOIs were received,

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016 allows the Resolution

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**Reasoning:** The court noted that despite multiple extensions, no resolution plan was received. The

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**Interpretation:** Section 33(1) provides a mechanism for liquidation when the CIRP process fails

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**Application:** In this case, the RP filed an application under section 33(1) because no

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** State Bank of…
- **Respondents:** Madhusala Drinks…
- **Advocates:** Shaunak…; Shaunak…

## Timeline

- **2019-08-26 — CIRP Init…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2019-08-28 — Public Annou…**: Public announcement made in Financial Express and Ek Din newspapers, fixing 2019-09-09 as…

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