# In the matter of Rathna Stores Pvt. Ltd. MA No. 220-2018 in CP No. 608-IB-CB-2017

> NCLT judgment dated 2018-08-14. Citation: TCN-2018-NCLT-00942. The case involves an application by ICICI Bank Limited, the financial creditor, against Rathna…

- **Court:** NCLT
- **Order date:** 14 Aug 2018
- **Citation:** TCN-2018-NCLT-00942
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rathna-stores-pvt-ltd-ma-no-220-2018-in-cp-no-608-ib-cb-2017-7258b6f0

## Summary

### Background

The case involves an application by ICICI Bank Limited, the financial creditor, against Rathna Stores Private Limited, the corporate debtor, under the Insolvency and Bankruptcy Code, 2016. The applicant sought liquidation of the corporate debtor due to the failure to arrive at a resolution plan. The Resolution Professional (RP) was appointed earlier but faced challenges in managing the CIRP due to non-compliance of statutory provisions by the corporate debtor and non-availability of data. The CoC decided to liquidate the CD in their 4th meeting.

## Facts

ICICI Bank Limited, the financial creditor, filed an application against Rathna Stores Private Limited, the corporate debtor. The corporate debtor had not complied with various statutory provisions, including filing statutory returns under the Companies Act, 2013, since March 31, 2010. The RP faced difficulties in ascertaining the assets and liabilities of the corporate debtor due to the lack of available data. The RP conducted three CoC meetings but no resolution plan was arrived at. The fourth CoC meeting decided to liquidate the corporate debtor. The applicant alleged breaches of the Code and IBBI regulations by the RP, including failure to provide adequate notice for CoC meetings and improper conduct of the CIRP. The RP stated that various tax attachments were made

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016 allows the Adjudicating Authority to order

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**Reasoning:** The Adjudicating Authority considered the fact that no resolution plan was arrived at

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**Interpretation:** Section 33(1)(a) provides the legal basis for liquidation when resolution

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**Application:** Given the failure to achieve a resolution plan and the circumstances presented

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** M/s. ICICI Bank…
- **Respondents:** M/s. Rathna…

## Timeline

- **2017-11-03 — Application A…**: Tribunal admitted the application and appointed Mr.Nagarajan as the IRP to commence the…
- **2017-12-21 — First COC M…**: The RP conducted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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