# In the matter of Shree Radhe Industries Ltd. MA 186-2018 In CP (IB) 1063(MB)-2017

> NCLT judgment dated 2018-09-11. Citation: TCN-2018-NCLT-00788. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Sept 2018
- **Citation:** TCN-2018-NCLT-00788
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-radhe-industries-ltd-ma-186-2018-in-cp-ib-1063mb-2017-a3263425

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Shree Radhe Industries Ltd. The application was filed by the Resolution Professional based on the approval of the Committee of Creditors (CoC) on 05-01-2018. The CoC approved the liquidation due to the absence of tangible or intangible assets in the Corporate Debtor's name, as these had been previously sold off by Punjab National Bank (PNB) under the SARFAESI Act in 2016, prior to the initiation of CIRP. The Resolution Professional was appointed after the petition by the Financial Creditor was admitted on 04-12-2017.

## Facts

On 04-12-2017, a petition filed by a Financial Creditor against Shree Radhe Industries Ltd (Corporate Debtor) was admitted, initiating the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP), Mr. Dushyant Dave, was appointed. On 07-12-2017, the IRP issued a public notice inviting creditors to submit proof of their claims by 21-12-2017. On 28-12-2017, the IRP filed a list containing the name of the creditor, Punjab National Bank (PNB), along with the amount claimed. On 05-01-2018, the IRP was confirmed as the Resolution Professional (RP) in the first meeting of the Committee of Creditors (CoC). It was discussed that the assets mentioned in the audited accounts were not physically available and had been sold off by PNB. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Shree Radhe Industries Ltd, should be liquidated under Section 33(2) …

**Ratio:** Section 33(2) of the IBC, 2016 allows for the liquidation of a corporate debtor when the

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**Reasoning:** The court reasoned that the CoC had approved the liquidation with a 100% voting share,

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP is unlikely to

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**Application:** In this case, the CoC approved the liquidation, and the court found that the

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## Parties

- **Judges:** B.S.V. Prakash…; Ravikumar…; +1 more
- **Respondents:** Shree Radhe…

## Timeline

- **2017-12-04 — Petition Ad…**: The petition filed by a Financial Creditor…
- **2017-12-07 — Public Notice…**: The IRP issued a public notice, inviting the creditors of the Corporate Debtor to submit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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