# In the matter of Visa Drugs & Pharmaceutical Private Limited IA No. 1390-KB-2020 in CP (IB) No. 1239/KB/2018

> NCLT judgment dated 2021-02-02. Citation: TCN-2021-NCLT-03158. The case involves an application filed by the Resolution Professional seeking liquidation of…

- **Court:** NCLT
- **Order date:** 2 Feb 2021
- **Citation:** TCN-2021-NCLT-03158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/visa-drugs-pharmaceutical-private-limited-ia-no-1390-kb-2020-in-cp-ib-no-1239kb2-b6f4a3d8

## Summary

### Background

The case involves an application filed by the Resolution Professional seeking liquidation of the Corporate Debtor, Visa Drugs & Pharmaceutical Private Limited. The Adjudicating Authority admitted the petition filed by Syndicate Bank & Union Bank of India (Financial Creditors) under section 7 of the Insolvency and Bankruptcy Code, 2016. The Interim Resolution Professional made a public announcement and fixed a last date for submitting claims. Despite multiple publications for submissions of Expression of Interest, no prospective resolution applicant expressed interest in submitting a resolution plan. Consequently, the Committee of Creditors voted unanimously in favor of liquidation.

## Facts

Syndicate Bank and Union Bank of India, acting as Financial Creditors, initiated insolvency proceedings against Visa Drugs & Pharmaceutical Private Limited. The Corporate Debtor was admitted into CIRP on 05.12.2019. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made to invite claims. Despite several attempts to find a resolution plan, including multiple publications of Expression of Interest (EoI) and extensions of deadlines, no prospective resolution applicant showed interest. The Committee of Creditors (CoC) voted unanimously on 23.11.2020 to liquidate the Corporate Debtor. The Resolution Professional (RP) then filed an application seeking liquidation, which was considered by the Adjudicating Authority. The CoC had resolved

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Visa Drugs & Pharmaceutical …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) enjoins the Adjudicating

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**Reasoning:** The Committee of Creditors (CoC) resolved by 100% voting share to liquidate the Corporate

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**Interpretation:** Section 33(2) of the IBC mandates the Adjudicating Authority to order

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**Application:** In this case, the CoC voted unanimously to liquidate Visa Drugs &

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Uday Naraya…
- **Respondents:** Visa Drugs &…

## Timeline

- **2019-12-05 — Admission in…**: The Corporate Debtor, Visa Drugs & Pharmaceutical Private Limited, was admitted into…
- **2019-12-11 — Public Annou…**: The Interim Resolution Professional made a public announcement in Financial Express…

## 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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