# In the matter of RCI Cash Management Services Pvt Ltd IA 746-2020 in CP(IB)No. 356-7-HDB-2019

> NCLT judgment dated 2020-11-03. Citation: TCN-2020-NCLT-00302. The case involves an application (IA No.746/2020) filed in CP(IB)No.356/7/HDB/2019 by the…

- **Court:** NCLT
- **Order date:** 3 Nov 2020
- **Citation:** TCN-2020-NCLT-00302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rci-cash-management-services-pvt-ltd-ia-746-2020-in-cpibno-356-7-hdb-2019-a1eac0eb

## Summary

### Background

The case involves an application (IA No.746/2020) filed in CP(IB)No.356/7/HDB/2019 by the Resolution Professional (RP) under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of liquidation proceedings for RCI Cash Management Services Private Limited (Corporate Debtor). The Corporate Debtor was initially admitted into the Corporate Insolvency Resolution Process (CIRP) following an application under Section 7 of the IBC by Pashupati Merchandise Private Limited (Financial Creditor). The Committee of Creditors (CoC) subsequently resolved to liquidate the Corporate Debtor with 100% votes, as no resolution plan was received.

## Facts

Pashupati Merchandise Private Limited (Financial Creditor) initiated Corporate Insolvency Resolution Process (CIRP) against RCI Cash Management Services Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2019-09-27, and Dr. K. Lakshmi Narasimha was appointed as the Interim Resolution Professional (IRP). In the first meeting of the Committee of Creditors (CoC) on 2019-11-23, Mr. Pradeep Kumar Sravanam was appointed as the Resolution Professional (RP). The Adjudicating Authority confirmed this appointment through orders dated 2019-12-02 and 2019-12-06. A Chartered Accountant, Mr. Vinay Kumar Mahipal, was appointed to compile the Corporate Debtor's accounts from 2015-16 up to 2019-11-30 and

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, RCI Cash Management Services …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Section 30(6)

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**Interpretation:** Section 33 provides a mechanism for liquidation when the CIRP fails to produce

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**Application:** Given the absence of a resolution plan and the CoC's decision, the Adjudicating

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** Pashupati…
- **Respondents:** RCI Cash Managemen…; RCI Cash Managemen…

## Timeline

- **2019-09-27 — CIRP Init…**: The Adjudicating Authority admitted the application under Section 7 of the IB Code filed…
- **2019-11-23 — RP Appoin…**: The Committee of Creditors (CoC) appointed Mr. Pradeep Kumar Sravanam as the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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