# In the matter of Somanil Chemicals Limited I.A. (IB) No. 221-2021
In C.P. (IB) No. 43-ALD-2019

> NCLT judgment dated 2021-12-14. Citation: TCN-2021-NCLT-00182. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 14 Dec 2021
- **Citation:** TCN-2021-NCLT-00182
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/somanil-chemicals-limited-ia-ib-no-221-2021-in-cp-ib-no-43-ald-2019-71d95f69

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of Somanil Chemicals Limited, the Corporate Debtor, as no resolution plan was approved by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated against Somanil Chemicals Limited based on a petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP period expired, and despite inviting expressions of interest, no resolution plan was received. The CoC resolved with 100% voting share to recommend liquidation.

## Facts

Punjab National Bank, a financial creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Somanil Chemicals Limited. Mr. Rajiv Bhatnagar was initially appointed as the Interim Resolution Professional (IRP) and was later replaced by Mr. Vekas Kumar Garg. The CIRP period expired on 18.08.2020. An application for exclusion of 166 days and an extension of 90 days for completing the CIRP were granted. Despite inviting expressions of interest twice through Form G, no resolution plan was received. On 16.06.2021, the Committee of Creditors (CoC) resolved with 100% voting share to recommend the liquidation of Somanil Chemicals Limited. The Resolution

…

## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

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

…

**Reasoning:** The Committee of Creditors (CoC) resolved with 100% voting share to recommend the

…

**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CoC, representing

…

**Application:** In this case, the CoC has resolved with 100% voting share to liquidate the

…

## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Vekas Kuma…
- **Respondents:** Somanil Chemicals…; Punjab National…
- **Advocates:** Alok Kumar…

## Timeline

- **2020-02-20 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **2020-08-18 — Expiry of CIR…**: The CIRP period…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/somanil-chemicals-limited-ia-ib-no-221-2021-in-cp-ib-no-43-ald-2019-71d95f69