# In the matter of SMV Commodities and Trading India Private Limited IA (IBC) 593-2021 in CP (IB) No. 207-7-HDB-2020

> NCLT judgment dated 2021-11-09. Citation: TCN-2021-NCLT-00561. The case involves an application filed by the Resolution Professional (RP) of SMV Commodities…

- **Court:** NCLT
- **Order date:** 9 Nov 2021
- **Citation:** TCN-2021-NCLT-00561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/smv-commodities-and-trading-india-private-limited-ia-ibc-593-2021-in-cp-ib-no-20-e8eb53c2

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of SMV Commodities and Trading India Private Limited, the Corporate Debtor, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of liquidation due to the non-receipt of a resolution plan. The insolvency petition was originally filed by the Financial Creditor, BRS Enterprises & Trading Limited, under Section 7 of the Code, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. An Interim Resolution Professional (IRP), Shri Krishna Komaravolu, was appointed.

## Facts

BRS Enterprises & Trading Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against SMV Commodities and Trading India Private Limited, the Corporate Debtor, by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Tribunal admitted the petition and appointed Shri Krishna Komaravolu as the Interim Resolution Professional (IRP). The IRP published Form-A, inviting claims from creditors. The Committee of Creditors (CoC) was constituted. Despite efforts to find a resolution plan, including publishing Form G and inviting Expressions of Interest, no viable resolution plan was received. Consequently, the CoC decided to liquidate the Corporate Debtor and directed the RP to file an application under Section

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33(2) of the Insolvency …

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

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**Reasoning:** The court reasoned that despite all possible steps taken during the CIRP, no viable

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**Interpretation:** Section 33(2) provides a clear directive for the Adjudicating Authority to

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**Application:** In this case, the application was filed under Section 33(2) because the CIRP

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## Parties

- **Judges:** N.V.RAMAKRISHNA…; Veera Brahma Rao…
- **Appellants:** BRS Enterprises &…
- **Respondents:** SMV Commodities…

## Timeline

- **2020-01-01 — CP (IB) No. 207/7/HDB/20…**: The Insolvency petition was filed by the Financial Creditor i.e., BRS Enterprises &…
- **2021-04-28 — CIRP init…**: Tribunal initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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