# In the matter of Surana Corporation Limited MA-418-2019 in CP-550-IB-2018

> NCLT judgment dated 2019-10-25. Citation: TCN-2019-NCLT-00797. The case pertains to an application filed under section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Oct 2019
- **Citation:** TCN-2019-NCLT-00797
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surana-corporation-limited-ma-418-2019-in-cp-550-ib-2018-06b8ce47

## Summary

### Background

The case pertains to an application filed under section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking a liquidation order for M/s. Surana Corporation Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated, and a Resolution Professional (RP) was appointed. Financial and operational creditors' claims were admitted. The RP prepared an Information Memorandum and invited expressions of interest, but no resolution plan was received. The Committee of Creditors (CoC) approved the resolution for liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Surana Corporation Limited under the IBC, 2016. Mr. C. Ramasubramaniam was appointed as the Resolution Professional (RP). Financial creditors' claims of ₹24,84,66,91,149.21 and operational creditors' claims of ₹42,72,95,631 were admitted. The RP prepared an Information Memorandum and invited expressions of interest, but no resolution applicant came forward by the deadline of 17.02.2019. The Committee of Creditors (CoC) approved a resolution for liquidation on 03.04.2019. The liquidation average value was determined as ₹4,63,00,000. The NCLT, Chennai Bench, considered the application and ordered the liquidation of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Surana Corporation Limited, should be liquidated due to the failure …

**Ratio:** Section 33(2) of the IBC, 2016, allows for the initiation of liquidation proceedings when

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**Reasoning:** The court reasoned that since no resolution plan was presented before the CoC within the

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**Interpretation:** The interpretation of Section 33(2) emphasizes that liquidation is a viable

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**Application:** In this case, the absence of a resolution plan and the CoC's approval for

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** C. Ramasubr…
- **Respondents:** Surana Corporation…
- **Advocates:** C. Ramasubr…

## Timeline

- **2018-10-05 — Admission of CP/550/IB/2…**: CP/550/IB/2018 was…
- **2018-11-05 — Appointment…**: The Applicant was appointed as RP…

## 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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