# In the matter of RHD Enterprises Private Limited Company Petition (I.B) No. 245-KB-2017

> NCLT judgment dated 2018-02-22. Citation: TCN-2018-NCLT-01787. Shree Shyam Inorganic Private Ltd., the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 22 Feb 2018
- **Citation:** TCN-2018-NCLT-01787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rhd-enterprises-private-limited-company-petition-ib-no-245-kb-2017-34c3b716

## Summary

### Background

Shree Shyam Inorganic Private Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against RHD Enterprises Pvt. Ltd., the Corporate Debtor. The application was initially allowed on August 21, 2017, to commence the CIRP. An Interim Resolution Professional (IRP), Mr. Rajendra Kr. Agarwal, was appointed to oversee the process. However, the Committee of Creditors (CoC) did not appoint the IRP as the Resolution Professional and did not recommend a name. The Insolvency & Bankruptcy Board of India proposed Mr. Bijay Murmuria, who was then appointed as the Resolution Professional by the Adjudicating Authority on January 11, 2018.

## Facts

Shree Shyam Inorganic Private Ltd. initiated CIRP against RHD Enterprises Pvt. Ltd. under Section 9 of the IBC, 2016. The application was initially allowed on August 21, 2017. Mr. Rajendra Kr. Agarwal was appointed as the Interim Resolution Professional (IRP). The CoC did not appoint the IRP as the Resolution Professional. Mr. Bijay Murmuria was appointed as the Resolution Professional by the Adjudicating Authority. The Resolution Professional reported non-cooperation from the Corporate Debtor's management. The CoC decided to liquidate the Corporate Debtor with 100% votes. The CIRP timeline expired on February 16, 2018. The Resolution Professional failed to submit a resolution plan. The Adjudicating Authority ordered the liquidation of RHD Enterprises Private Limited.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, RHD Enterprises Private Limited, should be liquidated due to the …

**Ratio:** Section 33 of the Insolvency & Bankruptcy Code, 2016, provides for the liquidation of

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**Reasoning:** The Adjudicating Authority reasoned that the CIRP had failed because the CoC did not

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**Interpretation:** The interpretation of Section 33 is that if the CIRP does not result in a

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**Application:** The Adjudicating Authority applied Section 33 to the facts of the case, noting

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## Parties

- **Judges:** V. P. S…; Jinan…
- **Appellants:** Shree Shyam…
- **Respondents:** RHD Enterprises…
- **Advocates:** Shuvasis Se…; Soumyajit…; +5 more

## Timeline

- **2017-08-21 — Initial Allowance of…**: The application for initiating Corporate Insolvency Resolution Process (CIRP) against RHD…
- **2017-12-15 — CoC Meet…**: Minutes of the meeting of the Committee of Creditors (CoC) indicated that the CoC did not…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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