# In the matter of Shree Ram Saw Mill Private Limited IA-1430(KB)2020 & IA No. 242 & 243-KB-2021 in CP (IB) No. 978-KB-2019

> NCLT judgment dated 2021-03-18. Citation: TCN-2021-NCLT-02649. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-ram-saw-mill-private-limited-ia-1430kb2020-ia-no-242-243-kb-2021-in-cp-ib-1d07e044

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Shree Ram Saw Mill Private Limited, due to non-cooperation by the suspended members of the Board of Directors. This non-cooperation prevented the conclusion of valuation, preparation of the Information Memorandum, and publication of Form 'G' for inviting Expressions of Interest. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Indian Overseas Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The RP also filed an application under section 70 of the IBC against the respondents praying for necessary directions for deliberate non-cooperation and blatant disregard of

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## Facts

Indian Overseas Bank initiated Corporate Insolvency Resolution Process (CIRP) against Shree Ram Saw Mill Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Kanchan Dutta was appointed as the Interim Resolution Professional (IRP). Public announcement was made as per Section 15 of the Code. However, the suspended members of the Board of Directors of the Corporate Debtor did not cooperate, preventing valuation, preparation of Information Memorandum, and publication of Form 'G'. The Committee of Creditors (CoC) recommended liquidation with 100% voting share. The Adjudicating Authority granted an exclusion of 162 days from the CIRP period due to the COVID-19 pandemic. The extended period of CIRP expired on 20/02/2021. The RP filed an

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed due to …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The court reasoned that the non-cooperation of the suspended Board of Directors prevented

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**Interpretation:** Section 33(2) provides the legal basis for liquidation when CIRP fails. The

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

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Shree Ram Saw…

## Timeline

- **2020-03-16 — CIRP Init…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2020-03-18 — Public Annou…**: Public announcement was made in 'Business…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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