# In the matter of Prag Distillery Pvt. Ltd. MA 309-2018 in CP-1067-2017

> NCLT judgment dated 2018-08-09. Citation: TCN-2018-NCLT-00966. The case involves an application filed under Section 33(1) and 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Aug 2018
- **Citation:** TCN-2018-NCLT-00966
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prag-distillery-pvt-ltd-ma-309-2018-in-cp-1067-2017-931b0419

## Summary

### Background

The case involves an application filed under Section 33(1) and 33(2) of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) based on a resolution passed by the Committee of Creditors (COC) on March 23, 2018, seeking approval for liquidation of Prag Distillery Pvt Ltd. The corporate insolvency resolution process (CIRP) was initiated following a petition filed by a financial creditor, which was admitted on June 27, 2017. The RP was appointed, and announcements were made in newspapers. Several COC meetings were held to explore resolution plans, but none were approved. The 270-day CIRP period expired on March 23, 2018, leading to the application for liquidation.

## Facts

On June 27, 2017, a petition filed by a Financial Creditor against Prag Distillery Pvt Ltd was admitted, initiating the Corporate Insolvency Resolution Process (CIRP). Ms. Dipti Mehta was appointed as the Interim Resolution Professional (IRP). The IRP made public announcements in the Free Press Journal and Navshakti. Two registered valuers were appointed. The first Committee of Creditors (COC) meeting resolved to appoint the IRP as the Resolution Professional (RP) after 30 days. Expenses related to the Corporate Debtor were approved by the COC. Valuation reports of the Corporate Debtor were discussed in the second COC meeting, noting that operational creditors would not receive any amount under Section 53 of the Code. Amit Dahanukar invited consultants to present a

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33 of the Insolvency …

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

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**Reasoning:** The court reasoned that the Resolution Professional (RP) and the COC made efforts to find

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if a resolution plan cannot

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**Application:** The court applied Section 33 to the facts, noting that the CIRP period had

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** Dipti Mehta,…
- **Respondents:** Prag Distillery…

## Timeline

- **2017-06-27 — Petition Filed and…**: A petition filed by a Financial Creditor…
- **2017-07-02 — Appointment…**: The Interim Resolution Professional (Ms…

## 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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