# In the matter of Rhytem Overseas Trade Limited IA (IB) No. 1036-KB-2020
In CP (IB) No. 230-KB-2019

> NCLT judgment dated 2021-01-06. Citation: TCN-2021-NCLT-03382. The case pertains to an application filed by the Resolution Professional seeking liquidation of…

- **Court:** NCLT
- **Order date:** 6 Jan 2021
- **Citation:** TCN-2021-NCLT-03382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rhytem-overseas-trade-limited-ia-ib-no-1036-kb-2020-in-cp-ib-no-230-kb-2019-5a9ed64f

## Summary

### Background

The case pertains to an application filed by the Resolution Professional seeking liquidation of Rhytem Overseas Trade Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority ordered the initiation of CIRP on 07.11.2019 and appointed an Interim Resolution Professional (IRP). Public announcement was made as per Section 15 of the Code. The Committee of Creditors (CoC) was duly constituted. The first CoC meeting was held on 09.12.2019, confirming the Applicant as the RP. Invitation for Expression of Interest (EoI) was published, but no EoI was received. The CoC, in its 6th meeting on

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## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Rhytem Overseas Trade Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition on 07.11.2019. Yogesh Gupta was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcement was made on 15.11.2019, with 21.11.2019 as the last date for submitting claims. The Committee of Creditors (CoC) was constituted. Invitation for Expression of Interest (EoI) was published on 25.01.2020 and 26.01.2020, with a deadline of 10.02.2020, but no EoI was received. The RP informed the CoC, and a request to republish Form G was not approved. In the 6th CoC meeting on 22.07.2020, a

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Rhytem Overseas Trade Limited, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The court reasoned that the CoC had resolved by 100% voting share to liquidate the

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**Interpretation:** Section 33(2) is interpreted to mean that if the CoC, by the requisite

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**Application:** In this case, the CoC, with a 100% vote, resolved to liquidate Rhytem Overseas

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** State Bank of…
- **Respondents:** Rhytem Overseas…

## Timeline

- **2019-11-07 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **2019-11-15 — Public Annou…**: Public announcement was made in…

## 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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