# In the matter of Southern Online Bio Technologies LImited IA No. 565-2019 in CP (IB) No. 343-7-HDB-2018

> NCLT judgment dated 2019-07-16. Citation: TCN-2019-NCLT-02498. The case involves an application filed by the Resolution Professional under Section 33(2),…

- **Court:** NCLT
- **Order date:** 16 Jul 2019
- **Citation:** TCN-2019-NCLT-02498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/southern-online-bio-technologies-limited-ia-no-565-2019-in-cp-ib-no-343-7-hdb-20-4e1ac6fc

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(2), Section 34(1), and Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking orders for liquidating the Corporate Debtor, Southern Online Bio Technologies Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following the admission of a petition filed by Bank of India under Section 7 of the IBC, 2016. Despite several Committee of Creditors (CoC) meetings and attempts to invite resolution plans, the CoC ultimately voted for liquidation as no viable resolution plan was received or approved.

## Facts

The Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Southern Online Bio Technologies Limited by filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 05.10.2018. Ms. G. Kalpana was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional. Public announcements were made to invite claims from creditors. Several Committee of Creditors (CoC) meetings were held to explore resolution plans. Despite extending the deadline for submission of resolution plans multiple times, only one resolution plan was received, which was subsequently rejected by the CoC with a 69% voting share. The CIRP period of 270 days expired on 01.07.2019. As a result, the CoC

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for liquidation of the Corporate Debtor in …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC), 2016, mandates that if the

…

**Reasoning:** The court reasoned that since no resolution plan was approved within the CIRP period, and

…

**Interpretation:** This section of the IBC is interpreted to mean that the primary objective is to

…

**Application:** In this case, the Resolution Professional failed to secure an approved

…

## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Bank of…
- **Respondents:** Southern Online…; Southern Online -…

## Timeline

- **2018-10-05 — Admission of…**: The Tribunal admitted the petition filed under Section 7 of IBC, 2016 by Bank of India,…
- **2018-10-07 — Public Annou…**: Public announcement was carried out in Financial Express and Sakshi newspapers inviting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

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/southern-online-bio-technologies-limited-ia-no-565-2019-in-cp-ib-no-343-7-hdb-20-4e1ac6fc