# In the matter of Shree Vaishno Devi Mills Private Ltd. MA-1418-2019 in CP-1216-ib-2018

> NCLT judgment dated 2020-01-27. Citation: TCN-2020-NCLT-02171. The case pertains to an application filed under Section 33(1)(a) & 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Jan 2020
- **Citation:** TCN-2020-NCLT-02171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-vaishno-devi-mills-private-ltd-ma-1418-2019-in-cp-1216-ib-2018-1a93c487

## Summary

### Background

The case pertains to an application filed under Section 33(1)(a) & 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Shree Vaishno Devi Mills Private Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated on 22.07.2019, and a public announcement was made on 24.07.2019. The sole claim staked before the IRP was by the Stressed Assets Stabilization Fund (SASF), the sole financial creditor. The CoC was constituted on 13.08.2019, and the IRP was appointed as the RP. Valuers were appointed on 28.08.2019 to ascertain the fair and liquidation value of the Corporate Debtor. The fair value was assessed at Rs.15,69,11,527/-, and the liquidation value at Rs.12,66,90,251/-.

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for Shree Vaishno Devi Mills Private Ltd. on 22.07.2019. A public announcement was made on 24.07.2019. The Stressed Assets Stabilization Fund (SASF) was the sole financial creditor. The Committee of Creditors (CoC) was formed on 13.08.2019. Valuers were appointed on 28.08.2019. The fair value of the Corporate Debtor was assessed at Rs.15,69,11,527/-, and the liquidation value at Rs.12,66,90,251/-. No Expressions of Interest (EOI) were received. The CoC resolved to liquidate the Corporate Debtor before the CIRP period expired on 18.01.2020. No resolution plan was presented in any of the three CoC meetings. The Resolution Professional (RP) filed an application under Section 33(1)(a) & 33(2) of the IBC,

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(1)(a) & 33(2) of the Insolvency and …

**Ratio:** Section 33 of the IBC, 2016, allows the Adjudicating Authority to pass an order for

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**Reasoning:** The Tribunal reasoned that in the absence of any resolution plan filed before it and

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**Interpretation:** Section 33 of the IBC provides a mechanism for liquidation when the CIRP fails

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**Application:** The Tribunal applied Section 33 of the IBC to the facts of the case, noting the

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** A.G. Sathyanarayan…
- **Respondents:** Shree Vaishno…

## Timeline

- **2019-07-22 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated for Shree Vaishno Devi Mills…
- **2019-07-24 — Public Annou…**: Public announcement was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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