# In the matter of Varam Bioenergy Private Limited IA (IBC)-196-2021 in CP (IB) No. 377-7-HDB-2018

> NCLT judgment dated 2021-07-08. Citation: TCN-2021-NCLT-01810. The Resolution Professional of Varam Bioenergy Pvt Ltd filed an application under Section 33(1)…

- **Court:** NCLT
- **Order date:** 8 Jul 2021
- **Citation:** TCN-2021-NCLT-01810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varam-bioenergy-private-limited-ia-ibc-196-2021-in-cp-ib-no-377-7-hdb-2018-974633ec

## Summary

### Background

The Resolution Professional of Varam Bioenergy Pvt Ltd filed an application under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, for the liquidation of the Corporate Debtor due to the non-receipt of a resolution plan. The insolvency petition was initially filed by State Bank of India (SBI) under Section 7 of the Code, which was admitted on 2019-07-18. An Interim Resolution Professional (IRP) was appointed, later replaced by the applicant, Shri Vikas Prakash Gupta, as the Resolution Professional (RP). Despite efforts to invite resolution plans, none were received, leading the Committee of Creditors (CoC) to direct the applicant to file for liquidation.

## Facts

The State Bank of India (SBI) initiated Corporate Insolvency Resolution Process (CIRP) against Varam Bioenergy Pvt Ltd by filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC). The petition was admitted on 2019-07-18. An Interim Resolution Professional (IRP) was appointed, who was later replaced by Shri Vikas Prakash Gupta as the Resolution Professional (RP). Form G was published to invite expression of interest for resolution plans, with a deadline of 2019-10-07. The RP received requests from two prospective Resolution Applicants, but no resolution plan was ultimately submitted. The Committee of Creditors (CoC) did not propose any extension of the CIRP period, which expired on 2020-01-14. Consequently, the CoC directed the RP to file an

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code mandates the initiation of

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**Reasoning:** The court reasoned that despite all possible steps taken during the CIRP, the CoC did not

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**Interpretation:** Section 33(1) is interpreted to mean that if the CIRP fails to produce a

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**Application:** Since no resolution plan was received and the CoC opted for liquidation, the

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## Parties

- **Judges:** Madan B.…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** Varam Bioenergy…

## Timeline

- **2018-01-01 — CP (IB) No. 377/7/HDB/20…**: The Insolvency Petition was filed by State Bank of India (SBI) under Section 7 of the…
- **2019-07-18 — Petition Ad…**: The petition filed by SBI was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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