# In the matter of Thiru Arooran Sugars Limited IA-1186-IB-2020 in IBA-243-2020

> NCLT judgment dated 2021-04-08. Citation: TCN-2021-NCLT-02431. The case pertains to IA/1186/IB/2020 in IBA/243/2019 filed under Section 33(2) of the…

- **Court:** NCLT
- **Order date:** 8 Apr 2021
- **Citation:** TCN-2021-NCLT-02431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/thiru-arooran-sugars-limited-ia-1186-ib-2020-in-iba-243-2020-d3305a7b

## Summary

### Background

The case pertains to IA/1186/IB/2020 in IBA/243/2019 filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, concerning M/s. Thiru Arooran Sugars Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated by the Tribunal vide order dated 07.06.2019. The applicant was appointed as IRP on the same day and caused paper publication in 'The Hindu' and 'Dinamalar' fixing the last date for filing claims as 21.06.2019. The IRP was appointed as the Resolution Professional in the first CoC meeting held on 06.07.2019. The applicant constituted the CoC with the Financial Creditor. The Information Memorandum was submitted to the members of the CoC and Expression of Interest on 03.06.2020. In the 13th CoC meeting convened on 25.08.2020, resolution plans

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of M/s. Thiru Arooran Sugars Limited was initiated by the Tribunal on 07.06.2019. Mr. R. Raghavendran was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, and meetings were held to discuss resolution plans. An Expression of Interest was published, and M/s. KALS Distilleries Private Limited submitted a claim. However, the resolution plan was rejected by the CoC with 76.02% voting share. The applicant sought an extension of the CIRP period, but the extended period expired on 09.12.2020. Consequently, an application for liquidation was filed. The CoC voted for

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Thiru Arooran Sugars Limited, should be liquidated due to the …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016 allows for the liquidation

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**Reasoning:** The CoC voted against the resolution plan with a significant majority (76.02%),

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**Interpretation:** Section 33 of the IBC provides a mechanism for liquidation when the CIRP fails

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**Application:** In this case, the CoC's rejection of the resolution plan triggered the

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** R. Raghav…
- **Respondents:** M/s. Thiru…

## Timeline

- **2019-06-07 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2019-06-07 — Appointment…**: Mr. R. Raghavendran appointed as…

## 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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