# 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-02399. 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-02399
- **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-2019-26236585

## 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 it twice. Consequently, the Committee of Creditors (COC) resolved in its 12th meeting to liquidate the Corporate Debtor, with 98.46% voting in favor of liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Shakti Refoils & Agro Foods Products Pvt Ltd, with CP(IB) 630 of 2019 being admitted on 2020-01-27. Mr. Navin Khandelwal was initially appointed as the Interim Resolution Professional (IRP). Later, the Applicant was appointed as the Resolution Professional (RP) vide order dated 2020-06-11. Despite publishing the Expression of Interest (EOI) twice, no interest was shown, and no resolution plan was received. The Committee of Creditors (COC) in its 12th meeting held on 2021-01-16, resolved to liquidate the Corporate Debtor with 98.46% voting in favor. The suspended management was issued a notice but remained absent from the COC meeting. The RP, Mr. Ajay Marathe, consented to act as the

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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 should not 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 legal principle emphasizes the importance of respecting the decisions made

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**Application:** In this case, the COC voted in favor of liquidation with 98.46% voting share.

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## Parties

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

## Timeline

- **2019-01-01 — CP(IB) F…**: CP(IB) 630 of 2019 filed…
- **2020-01-27 — CP(IB) Ad…**: CP(IB) 630 of 2019 was…

## 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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