# In the matter of Padmaadevi Sugars Ltd. IA-364, 648,649,650 & 651-IB-2020 in CP-768-IB-2018

> NCLT judgment dated 2021-04-20. Citation: TCN-2021-NCLT-02330. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of M/s. Padmaadevi…

- **Court:** NCLT
- **Order date:** 20 Apr 2021
- **Citation:** TCN-2021-NCLT-02330
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/padmaadevi-sugars-ltd-ia-364-648649650-651-ib-2020-in-cp-768-ib-2018-a7c096e4

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of M/s. Padmaadevi Sugars Limited, initiated following an order dated 15.10.2018 by the Adjudicating Authority. Mr. Mudapallur Varieth Gangadharan was appointed as the IRP and subsequently as the Resolution Professional (RP). Several applications (IAs) were filed concerning the liquidation of the Corporate Debtor, condonation of delay, and allegations of mismanagement against the RP. The CIRP period ended on 17.01.2021, and no resolution plan was approved.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for M/s. Padmaadevi Sugars Limited following an order dated 15.10.2018. Mr. Mudapallur Varieth Gangadharan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The CIRP period ended on 17.01.2021. No resolution plan was received within the stipulated time. An application to extend the CIRP was filed in MA/477/2019, and the Adjudicating Authority allowed the exclusion of 189 days on 11.07.2019. Indian Overseas Bank and Bank of India, holding 63.80% and 32.75% of the voting rights in the Committee of Creditors (CoC) respectively, raised allegations of mismanagement against the RP. The e-voting facility of the 10th CoC meeting on 07.08.2020 was allegedly

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Padmaadevi …

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

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**Reasoning:** The CIRP period had ended on 17.01.2021, and no resolution plan or proposal was pending.

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**Interpretation:** The IBC mandates liquidation when the CIRP fails to produce a viable resolution

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**Application:** Given the absence of a resolution plan and the expiry of the CIRP period, the

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Mudapallur…
- **Respondents:** M/s. Padmaadevi…; Bank of…

## Timeline

- **2018-10-15 — Order for…**: The Adjudicating Authority ordered for Corporate Insolvency Resolution Process (CIRP) of…
- **2018-11-14 — Appointment…**: The IRP was appointed as Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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