# In the matter of Narmada Cereal Pvt. Ltd. IA-3796-2021 in CP (IB) -138-ND-2020

> NCLT judgment dated 2022-01-04. Citation: TCN-2022-NCLT-04548. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 4 Jan 2022
- **Citation:** TCN-2022-NCLT-04548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/narmada-cereal-pvt-ltd-ia-3796-2021-in-cp-ib-138-nd-2020-654c57fd

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Narmada Cereals Pvt. Ltd. The petition was admitted on 2020-12-07. Mr. Arun Chadha was appointed as the Interim Resolution Professional (IRP). Subsequently, Dr. Vichitra Narayan Pathak was appointed as the Resolution Professional (RP). Despite multiple attempts and extensions, the Committee of Creditors (CoC) did not find any feasible resolution plan. The CoC ultimately voted for the liquidation of the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Narmada Cereals Pvt. Ltd. after the petition was admitted on 2020-12-07. Mr. Arun Chadha was initially appointed as the Interim Resolution Professional (IRP), followed by Dr. Vichitra Narayan Pathak as the Resolution Professional (RP). A public announcement was made, and Punjab National Bank was identified as the sole financial creditor. Several CoC meetings were held, and multiple extensions were granted for submission of resolution plans. Despite these efforts, the CoC, exercising its commercial wisdom, rejected all resolution plans, including a revised composite plan submitted by a Resolution Applicant (RA) for Rs. 37 Crores. The CoC also rejected the appointment of the RP as the liquidator.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Narmada Cereals Pvt. Ltd., should be ordered for liquidation due to …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

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**Reasoning:** The CoC, exercising its commercial wisdom, rejected all resolution plans presented,

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**Interpretation:** Section 33 provides a clear framework for liquidation when the CIRP process

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**Application:** In this case, the CoC's rejection of all resolution plans triggered the

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## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Appellants:** Vichitra Narayan…
- **Respondents:** Narmada Cereals…

## Timeline

- **2020-12-07 — Petition Ad…**: The petition for CIRP against Narmada Cereals Pvt. Ltd. was admitted by the Adjudicating…
- **2020-12-07 — IRP Appo…**: Mr. Arun Chadha was appointed as 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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