# In the matter of Sri Lakshminarasimha Oil Mills Private Limited IA No. 838-2020 in CP(IB)No. 532-07-HDB-2019

> NCLT judgment dated 2021-05-13. Citation: TCN-2021-NCLT-02149. The case involves an application (IA No. 838/2020) filed in CP(IB)No.532/07/HDB/2019 by the…

- **Court:** NCLT
- **Order date:** 13 May 2021
- **Citation:** TCN-2021-NCLT-02149
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-lakshminarasimha-oil-mills-private-limited-ia-no-838-2020-in-cpibno-532-07-h-9d6d9348

## Summary

### Background

The case involves an application (IA No. 838/2020) filed in CP(IB)No.532/07/HDB/2019 by the Resolution Professional (RP) of Sri Lakshminarasimha Oil Mills Private Limited, seeking an order for liquidation of the Corporate Debtor under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2019-11-13. The Committee of Creditors (CoC) was formed, and an Expression of Interest was invited for Resolution Plans. Three parties expressed interest, but only one, Mrs. Chittimalla Revathi, submitted a plan but failed to deposit the required Earnest Money Deposit (EMD) or Security Deposit (SD).

## Facts

Sri Lakshminarasimha Oil Mills Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP commenced on 2019-11-13. The first meeting of the Committee of Creditors (CoC) was held on 2019-12-06, where the existing Interim Resolution Professional (IRP) was appointed as Resolution Professional (RP). An Expression of Interest (EOI) was invited for Resolution Plans, and the RP received EOIs from three parties. The final list of prospective Resolution Applicants was released on 2020-03-25. Out of the three applicants, only Mrs. Chittimalla Revathi submitted a plan but requested an extension of time due to COVID-19 related difficulties. Mrs. Revathi failed to deposit the required Earnest Money Deposit (EMD) or Security Deposit (SD) by the

…

## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Mrs. Chittimalla Revathi can be approved despite her …

**Ratio:** A Resolution Plan cannot be approved if the Resolution Applicant fails to comply with the

…

**Reasoning:** The CoC expressed doubts about the financial strength of the Resolution Applicant and

…

**Interpretation:** The interpretation of the IBC emphasizes the importance of adhering to the

…

**Application:** In this case, Mrs. Chittimalla Revathi's failure to deposit the EMD/SD, despite

…

## Parties

- **Judges:** Madan B.…; BINOD KUMAR…
- **Respondents:** LAKSHMINARASIMHA…

## Timeline

- **2019-11-13 — Commencement…**: The Applicant Company was admitted for…
- **2019-12-06 — First CoC M…**: The First meeting of Committee of Creditors was called on 2019-12-06, where in the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/sri-lakshminarasimha-oil-mills-private-limited-ia-no-838-2020-in-cpibno-532-07-h-9d6d9348