# In the matter of Advance Nath Agri Chemicals Pvt Ltd. IA 11 of 2022 In TP-100-2019 {CP(IB) 542 of 2018}

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00025. The case involves an application filed by Mr. Sanjeev Chaudhary, the Resolution Professional…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-nath-agri-chemicals-pvt-ltd-ia-11-of-2022-in-tp-100-2019-cpib-542-of-201-55b377bd

## Summary

### Background

The case involves an application filed by Mr. Sanjeev Chaudhary, the Resolution Professional (RP) of M/s Advance Nath Agri Chemicals Private Limited, under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor based on an application filed by an operational creditor under Section 9 of the Code, which was admitted on 2020-12-15. The RP constituted a Committee of Creditors (COC) with two members: TCI Freight and Astec Lifesciences Limited. The COC resolved to liquidate the corporate debtor due to a lack of revival prospects and the corporate debtor's failure to cooperate or honor a settlement deed. The RP was unable to obtain

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## Facts

The operational creditor initiated Corporate Insolvency Resolution Process (CIRP) against Advance Nath Agri Chemicals Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP was admitted on 2020-12-15. Sanjeev Chaudhary was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Committee of Creditors (COC) consisted of TCI Freight (0.210% voting rights) and Astec Lifesciences Limited (99.789% voting rights). In a meeting on 2021-02-16, the COC discussed the withdrawal of the application due to a settlement request. However, the corporate debtor failed to honor the settlement deed. The corporate debtor's last audited financial statements were for 2017-18. The RP was unable to obtain

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## Issues and analysis

### Issue 1: Whether the corporate debtor, M/s Advance Nath Agri Chemicals Private Limited, should be put into …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The COC, in its meeting, resolved to liquidate the corporate debtor due to the lack of a

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** The court applied Section 33 to the facts of the case, noting that the COC had

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Astec Lifescience…
- **Respondents:** Advance Nath Agri…; Amit Te…

## Timeline

- **2020-12-15 — CIRP Admi…**: The Adjudicating Authority admitted the application for initiating Corporate Insolvency…
- **2021-02-16 — COC Meet…**: The Committee of Creditors (COC) discussed the withdrawal of the application pursuant to…

## 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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