# In the matter of Santosh Hospitals Private Limited MA-1189-2019 in IBA-434-2019

> NCLT judgment dated 2019-12-17. Citation: TCN-2019-NCLT-00118. The case involves an application for liquidation of Santosh Hospitals Private Limited under the…

- **Court:** NCLT
- **Order date:** 17 Dec 2019
- **Citation:** TCN-2019-NCLT-00118
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/santosh-hospitals-private-limited-ma-1189-2019-in-iba-434-2019-95950842

## Summary

### Background

The case involves an application for liquidation of Santosh Hospitals Private Limited under the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated, and Ms. SriPriya Kumar was appointed as the Interim Resolution Professional (IRP). Subsequently, Ms. Deepa Venkat Ramani was appointed as the Resolution Professional (RP). The CoC passed a resolution for liquidation due to the lack of requisite information from the Promoter-Directors, hindering the determination of the liquidation value. The suspended directors sought to put the CoC decisions on hold and filed MAs restraining the RP from proceeding with forensic audit, valuation, and invitation for Expression of Interest. The CIRP period of 180 days expired, and

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## Facts

Santosh Hospitals Private Limited underwent CIRP, initiated under the IBC, 2016. Ms. SriPriya Kumar was initially appointed as the IRP, followed by Ms. Deepa Venkat Ramani as the RP. The CoC resolved to liquidate the company due to the failure of the Promoter-Directors to provide essential information for valuation. The Promoter-Director, Mr. Mahalingam, filed an affidavit promising to pay ₹57.50 Crores to Muthoot Fincorp Limited, a financial creditor, but failed to do so. The Suspended-Directors filed multiple MAs to restrain the RP from conducting forensic audits, valuation, and issuing invitations for Expression of Interest. The CIRP period of 180 days expired, and despite extensions, no resolution plan was achieved. The CoC, with 73.44% voting share, passed a

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Santosh Hospitals Private Limited, should be liquidated under the …

**Ratio:** Section 33(2) of the IBC allows for liquidation if the CoC decides to liquidate the

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**Reasoning:** The court reasoned that the CIRP period had expired, and despite extensions, no

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the CIRP fails to

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**Application:** The court applied Section 33(2) to the facts of the case, noting that the CIRP

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Deepa Venkat…
- **Respondents:** Santosh Hospitals…

## Timeline

- **2019-04-08 — Admission of IBA/434/201…**: IBA/434/2019 was admitted, and Ms. SriPriya Kumar was appointed as Interim Resolution…
- **2019-07-03 — Constitution…**: The Committee of…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/santosh-hospitals-private-limited-ma-1189-2019-in-iba-434-2019-95950842