# In the matter of Royal Agro Green Food Industries Private Limited MA-1163-2019 in C.P.(IB)1326(MB)-2017

> NCLT judgment dated 2019-04-15. Citation: TCN-2019-NCLT-03894. The case involves a corporate insolvency resolution process (CIRP) initiated under the…

- **Court:** NCLT
- **Order date:** 15 Apr 2019
- **Citation:** TCN-2019-NCLT-03894
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-agro-green-food-industries-private-limited-ma-1163-2019-in-cpib1326mb-2017-ab890220

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) initiated under the Insolvency and Bankruptcy Code (IBC). An extension of 90 days was granted, concluding on 15.04.2019, exhausting a total of 270 days. The Committee of Creditors (CoC) convened on 11.04.2019 and resolved to seek an order for liquidation under Section 33 of the Code. Despite the absence of a separate application for liquidation, the resolution annexed with the Progress Report was considered.

## Facts

The Corporate Debtor, Saba Bahar Iranian Co., was undergoing CIRP. An extension of 90 days was granted, concluding on 15.04.2019, exhausting a total of 270 days. The CoC convened on 11.04.2019 and resolved to seek liquidation under Section 33 of the IBC. The RP expressed unwillingness to continue as RP, but in the absence of an alternative suggestion, the RP was directed to continue as Liquidator. An application was moved by the RP under Section 19 for action against the Ex-Director for non-cooperation. A show cause notice was issued to Mr. Kashinath Jadhav for non-cooperation. The moratorium declared earlier was ceased. The key fact is the CoC's decision to liquidate the Corporate Debtor after exhausting the CIRP period, leading to the court's order for liquidation.

## Issues and analysis

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

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

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**Reasoning:** The CoC resolved to seek liquidation under Section 33 of the Code. The court considered

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**Interpretation:** Section 33 provides a mechanism for liquidation when resolution efforts fail or

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**Application:** The court applied Section 33 based on the CoC's resolution and ordered the

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Saba Bahar…; Royal Agro Green…

## Timeline

- **2019-02-07 — Extension of CI…**: An extension of 90 days…
- **2019-04-03 — Moratorium Dec…**: Moratorium declared vide Order dated 03.04.2018 in C.P. No. 1326/IBC/NCLT/MB/MAH/2017…

## 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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