# 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-02654. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02654
- **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-29d3c761

## 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, which prevented the conclusion of valuation, preparation of the Information Memorandum, and publication of Form 'G' for Expression 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. Public announcement was made, but the COVID-19 pandemic caused nationwide lockdown and restrictions, extending the CIRP period. Despite directions under Section 19 of IBC, non-cooperation persisted,

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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 the completion of valuation and preparation of the Information Memorandum. The COVID-19 pandemic and subsequent lockdown further hindered the CIRP process. The Committee of Creditors (CoC) recommended liquidation with 100% voting share. The RP filed an application seeking liquidation of the Corporate Debtor. The Adjudicating Authority granted

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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 a clear pathway for liquidation when CIRP fails due to

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**Application:** The court applied this ratio to the facts of the case, noting that the

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## Parties

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

## Timeline

- **2019-01-01 — CP (IB)/978(KB)/2019…**: Filing of CP (IB)/978(KB…
- **2020-03-16 — CIRP Init…**: Adjudicating Authority directed initiation…

## 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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