# In the matter of Shakti Refoils & Agro Foods Products Pvt. Ltd. IA-193(AHM)2021 in CP (IB) 630 of 2019

> NCLT judgment dated 2021-04-13. Citation: TCN-2021-NCLT-02400. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 13 Apr 2021
- **Citation:** TCN-2021-NCLT-02400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shakti-refoils-agro-foods-products-pvt-ltd-ia-193ahm2021-in-cp-ib-630-of-2019-0f26f979

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor, Shakti Refoils & Agro Foods Products Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP) was appointed. Subsequently, the Applicant was appointed as the Resolution Professional (RP). Despite efforts to find a resolution plan, no Expression of Interest (EOI) was received even after publishing EOI twice. The Committee of Creditors (COC) resolved to liquidate the Corporate Debtor with a 98.46% voting share.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Shakti Refoils & Agro Foods Products Pvt Ltd. An Interim Resolution Professional (IRP) was initially appointed, followed by the appointment of the Applicant as the Resolution Professional (RP). Despite efforts to find a resolution plan, no Expression of Interest (EOI) was received even after publishing EOI twice. The Committee of Creditors (COC) resolved to liquidate the Corporate Debtor with a 98.46% voting share. Notice was issued to the Suspended Management, but no one appeared. The RP has given his consent to act as Liquidator. The COC's decision to liquidate was based on their commercial wisdom, considering factors leading to the maximization of asset value. The Adjudicating Authority is

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the liquidation of the Corporate Debtor based on …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) is paramount and cannot be

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**Reasoning:** The Hon'ble Supreme Court has affirmed that neither the Adjudicating Authority nor the

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**Interpretation:** The IBC emphasizes the importance of the COC's decisions in the CIRP. The

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**Application:** In this case, the COC has resolved to liquidate the Corporate Debtor with a

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Shakti Refoils &…; Prakash Kumar…
- **Advocates:** Yuvraj Th…

## Timeline

- **2019-01-01 — CP(IB) 63…**: The matter of record that the C.P.…
- **2020-01-27 — Admission of CP(IB)…**: C.P. (I.B) No. 630/2019…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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