# In the matter of Yashoda Cotton & General Mills Pvt.Ltd. & Ors. CA No. 116, 170 of of 2018 In CP (IB) No.111-Chd-Pb-2017

> NCLT judgment dated 2018-05-25. Citation: TCN-2018-NCLT-01367. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Yashoda…

- **Court:** NCLT
- **Order date:** 25 May 2018
- **Citation:** TCN-2018-NCLT-01367
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yashoda-cotton-general-mills-pvtltd-ors-ca-no-116-170-of-of-2018-in-cp-ib-no111-49afe2f5

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Yashoda Cotton & General Mills Pvt. Ltd. based on an application filed by an Operational Creditor, Kapil Dev Kansal. The petition was admitted on 28.11.2017, and a moratorium was declared. Initially, Mr. Manjul Mittal was appointed as the Interim Resolution Professional (IRP). Subsequently, due to the Committee of Creditors' (COC) decision, Mr. Sanjay Kumar Aggarwal was appointed as the Resolution Professional (RP). The COC, primarily formed by Punjab National Bank, decided to seek liquidation of the corporate debtor as no resolution plan was received. The RP also filed CA No.16/2018 under Section 19(2) and (3) of the Code alleging non-cooperation from the promoter directors in

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## Facts

Kapil Dev Kansal, an Operational Creditor, initiated CIRP against Yashoda Cotton & General Mills Pvt. Ltd. The petition was admitted on 2017-11-28. Mr. Manjul Mittal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Sanjay Kumar Aggarwal as the Resolution Professional (RP). Punjab National Bank was the sole financial creditor, forming the Committee of Creditors (COC). The COC decided to shift the registered office of the company, but the respondents (promoter directors) did not cooperate by providing digital signatures. No resolution plan was received despite invitations. The COC, with 100% voting, resolved to liquidate the corporate debtor. The RP filed CA No.16/2018 alleging non-cooperation from the promoter directors in

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## Issues and analysis

### Issue 1: Whether the corporate debtor, Yashoda Cotton & General Mills Pvt. Ltd., should be liquidated …

**Ratio:** Section 33(2) of the IBC stipulates that if the Resolution Professional (RP) informs the

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**Reasoning:** The court reasoned that the COC, comprising the sole financial creditor Punjab National

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

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**Application:** In this case, the COC, being the sole financial creditor, had unanimously

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Kapil Dev…
- **Respondents:** Yashoda Cotton &…

## Timeline

- **2017-11-28 — Admission of…**: The petition filed by the Operational Creditor, Kapil Dev Kansal, against Yashoda Cotton…
- **2017-12-07 — Appointment…**: Mr. Manjul Mittal was appointed as the…

## 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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