# In the matter of Royal Refinery Private Limited I.A. 59-2021 in C.P. 2556-I&B-MB-2019

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02347. The Corporate Insolvency Resolution Process (CIRP) was initiated against Royal Refinery Private…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-refinery-private-limited-ia-59-2021-in-cp-2556-ib-mb-2019-73b284c4

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Royal Refinery Private Limited based on a Section 9 petition filed by the Financial Creditor, Raksha Bullion. Mr. Nandkishor Vishnupant Deshpande was appointed as the Interim Resolution Professional (IRP). Public announcement was made to invite claims from creditors. The claims from one Financial Creditor and three Operational Creditors were admitted to a cumulative amount of INR 46.71 Crores. The Committee of Creditors (CoC) was constituted, and several meetings were held to discuss the resolution of the Corporate Debtor. However, the CoC decided not to pursue the sale of the Corporate Debtor as a going concern and opted for liquidation.

## Facts

Raksha Bullion, a Financial Creditor, initiated CIRP against Royal Refinery Private Limited. The CIRP was initiated on 2019-11-13. Nandkishor Vishnupant Deshpande was appointed as IRP. Claims were invited from creditors, and claims worth INR 46.71 Crores were admitted. Yes Bank was the sole financial creditor in the CoC. The CoC decided against selling the Corporate Debtor as a going concern. Valuations were conducted, with fair value estimated at INR 31,95,000 - INR 32,24,000 and liquidation value estimated at INR 16,12,000 - INR 16,55,000. The CoC approved liquidation with 100% voting. Nandkishor Vishnupant Deshpande was replaced by Arihant Nenawati as the Liquidator. The application for liquidation was filed under Section 33 of the Code. The relevance of these facts

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Royal Refinery Private Limited, should be liquidated under Section 33 …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The CoC, with Yes Bank as the sole financial creditor, approved the resolution for

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** In this case, the CoC decided to liquidate the Corporate Debtor, Royal Refinery

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; Chandra Bha…; +1 more
- **Respondents:** Royal Refinery…

## Timeline

- **2019-11-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor by…
- **2019-11-21 — Public Annou…**: Applicant made public announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230 — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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