# In the matter of Swati Mining Private Limited IA No. 1368-KB-2020 in CP (IB) No. 1161-KB-2018

> NCLT judgment dated 2021-01-22. Citation: TCN-2021-NCLT-03245. The case pertains to an application filed by the Resolution Professional (RP) seeking…

- **Court:** NCLT
- **Order date:** 22 Jan 2021
- **Citation:** TCN-2021-NCLT-03245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swati-mining-private-limited-ia-no-1368-kb-2020-in-cp-ib-no-1161-kb-2018-2fdb2adb

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Swati Mining Private Limited, as no Expression of Interest (EoI) was received from any prospective resolution applicant. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Bishandas Iron Works, an operational creditor, under section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had directed the initiation of CIRP and appointed an Interim Resolution Professional (IRP). Public announcement was made, and a Committee of Creditors (CoC) was duly constituted. The IRP later expressed unwillingness to continue, and Mr. Santanu Brahma was appointed as the RP.

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## Facts

Bishandas Iron Works, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Swati Mining Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition and appointed an Interim Resolution Professional (IRP). Public announcement was made on 2019-07-11, with a deadline of 2019-07-22 for submitting claims. A Committee of Creditors (CoC) was formed. The IRP later expressed unwillingness to continue, leading to the appointment of Mr. Santanu Brahma as the Resolution Professional (RP). The RP prepared and circulated an information memorandum on 2019-11-16. Invitation for Expression of Interest (EoI) was published on 2019-11-29, with a deadline of 2020-02-15. The CIRP period was

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Swati Mining Private Limited, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates liquidation when no

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**Reasoning:** The court reasoned that since no resolution plan was received even after extending the

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP fails to produce a

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Bishandas Iron…
- **Respondents:** Swati Mining…

## Timeline

- **2019-07-08 — CIRP Initiati…**: Adjudicating Authority ordered initiation of CIRP against Swati Mining Private Limited…
- **2019-07-11 — Public Annou…**: Public announcement made in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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