# In the matter of Upadan Commodities Pvt. Ltd. C.P (IB) No. 320-KB-2017

> NCLT judgment dated 2018-03-01. Citation: TCN-2018-NCLT-01758. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 1 Mar 2018
- **Citation:** TCN-2018-NCLT-01758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/upadan-commodities-pvt-ltd-cp-ib-no-320-kb-2017-29a26339

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Arun Kumar Jain, an Operational Creditor, against Upadan Commodities Private Ltd., the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The petition was admitted on August 29, 2017, and Mr. Sandeep Kumar Kejriwal was appointed as the Resolution Professional (RP). However, Mr. Kejriwal resigned without prior notice, and Mr. Basudeo Agarwal was appointed as the new RP. Mr. Agarwal expressed his inability to continue the resolution process due to a lack of cooperation from the Corporate Debtor and the Committee of Creditors (CoC). The CoC, with 100% voting share, decided not to extend the CIRP beyond 180 days.

## Facts

Arun Kumar Jain, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Upadan Commodities Private Ltd., the Corporate Debtor. The petition sought to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was admitted on August 29, 2017. Sandeep Kumar Kejriwal was initially appointed as the Resolution Professional (RP) but resigned without notice. Basudeo Agarwal was then appointed as the RP. Agarwal reported his inability to continue the CIRP due to a lack of cooperation from the Corporate Debtor and the Committee of Creditors (CoC). The CoC, holding 100% of the voting shares, decided not to apply for an extension of the CIRP beyond the initial 180-day period. The RP was unable to locate the

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## Issues and analysis

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

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, mandates liquidation when the

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**Reasoning:** The Committee of Creditors (CoC) unanimously decided not to extend the CIRP beyond 180

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CIRP fails due to the

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**Application:** Given the CoC's decision, the lack of a resolution plan, and the failure of the

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## Parties

- **Judges:** Jinan…
- **Appellants:** Arun Kuma…
- **Respondents:** Upadan Commodities…; M/s. Upadan…
- **Advocates:** Mehreen Bishra…

## Timeline

- **2017-08-29 — Petition Ad…**: The petition filed by Arun Kumar Jain against Upadan Commodities Private Ltd. was…
- **2017-08-29 — Appointment of…**: Mr. Sandeep Kumar Kejriwal was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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