# In the matter of Suvidha Farming and Allied Ltd. I.A. No. 105 of 2021 in (MP) TP 20 of 2019 C.P. (IB) No. 358-9-NCLT-AHM-2019

> NCLT judgment dated 2021-12-16. Citation: TCN-2021-NCLT-00153. The application was filed by the Resolution Professional (RP) under Section 33(2) of the…

- **Court:** NCLT
- **Order date:** 16 Dec 2021
- **Citation:** TCN-2021-NCLT-00153
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/suvidha-farming-and-allied-ltd-ia-no-105-of-2021-in-mp-tp-20-of-2019-cp-ib-no-35-92cca3e4

## Summary

### Background

The application was filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code (IBC) for passing an order of liquidation. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 2020-09-21. The CIRP period of 330 days had elapsed. The RP and the Committee of Creditors (CoC) did not receive any resolution plan to resolve the insolvency of the Corporate Debtor. The CoC, in its 7th meeting held on 2021-06-02, passed a resolution recommending the liquidation of the Corporate Debtor. The Adjudicating Authority was left with no option but to pass an order of liquidation.

## Facts

The Corporate Debtor, Suvidha Farming & Allied Ltd, was admitted into CIRP on 2020-09-21. The CIRP period of 330 days expired without a resolution plan being approved. The CoC, in its 7th meeting on 2021-06-02, resolved to recommend liquidation. The RP filed an application under Section 33(2) of the IBC for a liquidation order. The Adjudicating Authority found no alternative but to order liquidation. IA No. 105 of 2021 was related to this matter. Mr. Shaikh Nafis Anjum was appointed as the liquidator. A moratorium had been declared on 2020-09-21. The application was filed under Section 7 of IBC.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the failure of the CIRP to produce a …

**Ratio:** Section 33(2) of the IBC allows for liquidation when no resolution plan is received or

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**Reasoning:** The CIRP period of 330 days had expired, and no resolution plan was received. The CoC

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**Interpretation:** Section 33(2) mandates liquidation if the CIRP fails to produce a resolution

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**Application:** Since the CIRP failed and the CoC recommended liquidation, the Adjudicating

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** Rajesh Kuma…
- **Respondents:** Suvidha Farming &…

## Timeline

- **2020-09-21 — CIRP Admi…**: The Corporate Debtor was admitted into the…
- **2021-06-02 — CoC Meet…**: The Committee of Creditors (CoC) passed a resolution recommending the liquidation of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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