# In the matter of Royal Wood Private Limited I.A. 1613-2020 in Company Petition No. (IB)-510(PB)-2019

> NCLT judgment dated 2021-02-12. Citation: TCN-2021-NCLT-03055. The case pertains to an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 12 Feb 2021
- **Citation:** TCN-2021-NCLT-03055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-wood-private-limited-ia-1613-2020-in-company-petition-no-ib-510pb-2019-032a623d

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, M/s. Royal Wood Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an application under Section 7 of the Code by a Financial Creditor. The application was admitted on 24.05.2019, and Mr. Prawin Charan Dwary was appointed as the Interim Resolution Professional (IRP). Public announcements were made, and a Committee of Creditors (CoC) was constituted. Several CoC meetings were held to discuss the progress of the CIRP, including the invitation of Expression of Interest (Eol), eligibility criteria, and

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## Facts

The Resolution Professional (RP) filed an application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of M/s. Royal Wood Private Limited, the Corporate Debtor. A Financial Creditor had previously initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor under Section 7 of the Code, which was admitted on 24.05.2019. Mr. Prawin Charan Dwary was appointed as the Interim Resolution Professional (IRP). Public announcements were made, and a Committee of Creditors (CoC) was formed. The CoC convened several meetings to discuss the CIRP's progress, including inviting Expressions of Interest (Eols). The RP informed the CoC about the valuation of the Corporate Debtor's assets. Despite receiving

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Royal Wood Private Limited, …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The Committee of Creditors (CoC) concluded that no viable resolution plan was received

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**Interpretation:** Section 33(1) is interpreted to mean that if the CIRP fails to produce a

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**Application:** In this case, the CIRP failed to produce a resolution plan, and the CoC voted

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## Parties

- **Judges:** SHRI. B.S.V…; SHRI. HEMANT…
- **Appellants:** PRAWIN CHARAN…
- **Respondents:** M/s. ROYAL WOOD…
- **Advocates:** Vikky…

## Timeline

- **2019-05-24 — CIRP Init…**: Application under Section 7 of the Code admitted, initiating CIRP against the Corporate…
- **2019-05-24 — Appointment…**: Mr. Prawin Charan Dwary appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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