# In the matter of Y M Foodways Pvt. Ltd. IA-4943 & 5610-2020 in IB-421-ND-2019

> NCLT judgment dated 2021-02-04. Citation: TCN-2021-NCLT-03122. The case involves an application for liquidation of the Corporate Debtor, Y M Foodways Private…

- **Court:** NCLT
- **Order date:** 4 Feb 2021
- **Citation:** TCN-2021-NCLT-03122
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/y-m-foodways-pvt-ltd-ia-4943-5610-2020-in-ib-421-nd-2019-4d946ba0

## Summary

### Background

The case involves an application for liquidation of the Corporate Debtor, Y M Foodways Private Limited, due to the failure of the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated on 21.11.2019. Despite inviting expressions of interest, no resolution plan was received. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor with 100% voting.

## Facts

The Corporate Debtor, Y M Foodways Private Limited, underwent CIRP initiated on 2019-11-21. The initial share capital was Rs. 1.0 lakh, with negative reserves and surplus of Rs. 18.5 crore as of 2020-03-31. The company's revenue from operations was Rs. 2.93 crore during 2019-20, significantly lower than the Rs. 237 crore in 2018-19. The RP invited expressions of interest, but no resolution plan was received. The CoC, consisting of operational creditors, voted with 100% majority to liquidate the Corporate Debtor. The CoC replaced the initial IRP, Mr. Amit Kaushal, with Mr. Satya Prakash as the RP. The RP was then appointed as the liquidator. The Adjudicating Authority considered the application for liquidation under Section 33 of the IBC, noting the absence of a

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed under Section 33 …

**Ratio:** Section 33 of the IBC allows the Adjudicating Authority to order liquidation if no

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**Reasoning:** The court reasoned that since no resolution plan was received despite efforts to invite

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

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**Application:** In this case, the RP did not receive any resolution plan, and the CoC voted

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Sumukhi Sales Pvt…
- **Respondents:** Y M Foodways Pvt…

## Timeline

- **2019-11-21 — CIRP Commen…**: CIRP against the Corporate Debtor commenced…
- **2019-12-12 — Constitution…**: The IRP constituted CoC…

## 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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