# In the matter of R. A. Samy Trading Private Limited IA-213-IB-2020 & IA-35-IB-2021 in IBA-332-2019

> NCLT judgment dated 2021-04-20. Citation: TCN-2021-NCLT-02329. The case involves IA/213/IB/2020 filed by the Resolution Professional seeking an order for…

- **Court:** NCLT
- **Order date:** 20 Apr 2021
- **Citation:** TCN-2021-NCLT-02329
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-a-samy-trading-private-limited-ia-213-ib-2020-ia-35-ib-2021-in-iba-332-2019-1b64a9e8

## Summary

### Background

The case involves IA/213/IB/2020 filed by the Resolution Professional seeking an order for liquidation of the Corporate Debtor, M/s. R.A. Samy Trading Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated on 30.04.2019, and the Applicant was appointed as the IRP. The first CoC meeting was held on 22.05.2019, where the IRP was appointed as Resolution Professional. A public announcement inviting claims was published on 03.05.2019, with the last date for submission being 14.05.2019. The erstwhile Board of Director, Mr. Arumugasamy, initially expressed willingness to cooperate with the CIRP but later refused. NCLAT disposed of Mr. Arumugasamy's appeal and imposed costs. The CIRP

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of M/s. R.A. Samy Trading Private Limited was initiated on 30.04.2019. Mr. Ashok Velamur Sheshadri was appointed as the IRP and later as the Resolution Professional. Public announcement was made on 03.05.2019, inviting claims from creditors, with a deadline of 14.05.2019. The erstwhile Board of Director, Mr. A. Arumugaswamy, initially cooperated but later refused to do so. The NCLAT disposed of an appeal by Mr. Arumugaswamy and imposed costs. The CIRP period was extended by 90 days, excluding 55 days, but no resolution plan was received. There was a leased property of the corporate debtor which was leased out by Mr. Arumugasamy to his son Mr. A. Raghuram, by name, other than that there are no other

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. R.A. Samy Trading Private Limited, should be liquidated under …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The court reasoned that despite extending the CIRP period and making efforts to find a

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP fails to produce a

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**Application:** In this case, the CIRP failed because no Expression of Interest was received,

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** ASHOK VELAMUR…
- **Respondents:** M/s. R.A. Samy…; Punjab National…

## Timeline

- **2019-04-30 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated for M/s. R.A. Samy Trading…
- **2019-05-22 — First CoC M…**: The IRP was appointed as Resolution…

## 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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