# In the matter of Visa Pharmaceuticals Private Limited IA (IB) No. 1436-KB-2020 in CP (IB) No. 1235-KB-2018

> NCLT judgment dated 2021-01-18. Citation: TCN-2021-NCLT-03273. The case involves a petition filed by Syndicate Bank, the Financial Creditor, under Section 7…

- **Court:** NCLT
- **Order date:** 18 Jan 2021
- **Citation:** TCN-2021-NCLT-03273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/visa-pharmaceuticals-private-limited-ia-ib-no-1436-kb-2020-in-cp-ib-no-1235-kb-2-0840bb59

## Summary

### Background

The case involves a petition filed by Syndicate Bank, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Visa Pharmaceuticals Private Limited, the Corporate Debtor. The Corporate Debtor was admitted into CIRP by the Tribunal on 03.12.2019, and Mr. Kannan Tiruvengadam was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement inviting claims from creditors. Syndicate Bank, the sole financial creditor, submitted its claim. The Committee of Creditors (CoC) was formed, consisting of Syndicate Bank with 100% voting shares. The CoC approved the appointment of IRP as Resolution Professional (RP).

## Facts

Syndicate Bank filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Visa Pharmaceuticals Private Limited. The Corporate Debtor was admitted into CIRP on 03.12.2019, and Kannan Tiruvengadam was appointed as IRP. The IRP made a public announcement, and Syndicate Bank, the sole financial creditor, submitted its claim. The CoC, consisting of Syndicate Bank with 100% voting share, approved the appointment of IRP as RP. The RP filed an application for liquidation, stating that the Corporate Debtor had no significant trading activities or immovable properties and owed over ₹24 crores to Syndicate Bank. The CIRP period expired on 14.08.2020, and the RP could not prepare an information memorandum due to non-cooperation. The CoC

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Visa Pharmaceuticals Private …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The court reasoned that the CIRP period had expired, no resolution plan was in sight, and

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**Interpretation:** Section 33(2) provides a clear directive for the Adjudicating Authority to

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**Application:** In this case, the CIRP period had expired, and the CoC, with 100% voting share,

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## Parties

- **Judges:** Rajasekha…
- **Respondents:** Visa Pharmaceutica…

## Timeline

- **2019-12-03 — Admission in…**: The Corporate Debtor was…
- **2019-12-30 — First CoC M…**: In the first CoC meeting, the CoC approved the appointment of IRP as Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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