# In the matter of Sarvottam Vegetable Oil Refinery Pvt. Ltd. IA 304-2019 in CP (IB) 89 & 163-NCLT-AHM-2018

> NCLT judgment dated 2019-08-08. Citation: TCN-2019-NCLT-02034. The case involves an application (IA 304 of 2019) filed in conjunction with CP (IB) 89 of 2018…

- **Court:** NCLT
- **Order date:** 8 Aug 2019
- **Citation:** TCN-2019-NCLT-02034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarvottam-vegetable-oil-refinery-pvt-ltd-ia-304-2019-in-cp-ib-89-163-nclt-ahm-20-5eb578d1

## Summary

### Background

The case involves an application (IA 304 of 2019) filed in conjunction with CP (IB) 89 of 2018 and CP (IB) 163 of 2018 under Sections 33(1) a & 34 of the Insolvency and Bankruptcy Code, seeking the liquidation of the corporate debtor, Sarvottam Vegetables Oil Refinery. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by Adishwar Minerals & Chemicals and Itarsi Oils and Flours Pvt. Ltd. (Operational Creditor) under Section 9 of the Code. The Committee of Creditors (CoC) in its twelfth meeting resolved to recommend liquidation as no resolution plan was received within the stipulated 270-day period.

## Facts

Adishwar Minerals & Chemicals and Itarsi Oils and Flours Pvt. Ltd. (Operational Creditor) initiated the Corporate Insolvency Resolution Process (CIRP) against Sarvottam Vegetables Oil Refinery under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP was commenced by appointing an Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed, with Punjab National Bank as the sole member. During its twelfth meeting held on 2019-05-03, the CoC resolved to recommend liquidation as no resolution plan was received within the 270-day period stipulated for the CIRP. The Resolution Professional, Ms. Teena Saraswat Pandey, filed an application (IA 304 of 2019) seeking liquidation of the corporate debtor. The CoC submitted an affidavit

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## Issues and analysis

### Issue 1: Whether the corporate debtor, Sarvottam Vegetables Oil Refinery, should be liquidated as per …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code allows for the liquidation of a

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**Reasoning:** The Committee of Creditors (CoC), with 100% voting share, recommended liquidation due to

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

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**Application:** Since no resolution plan was received and the CoC recommended liquidation,

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Respondents:** Sarvottam…; Punjab National…

## Timeline

- **2019-05-03 — CoC Meet…**: The Committee of Creditors (CoC) in its twelfth meeting resolved to recommend liquidation…
- **2019-05-03 — CIRP Period…**: The 270-day period provided for the Corporate Insolvency Resolution Process (CIRP)…

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