# 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-00031. The case involves an application filed by Mr. Sanjeev Chaudhary, the Resolution Professional…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00031
- **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-201-703eaaca

## 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 following an application 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, in its meeting on 2021-02-16, discussed the withdrawal of the application based on a settlement request from the respondent. However, the corporate debtor failed to honor the settlement deed.

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## Facts

Astec Lifescience Limited initiated Corporate Insolvency Resolution Process (CIRP) against Advance Nath Agri Chemicals Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016. 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) was formed, consisting of TCI Freight (0.210% voting rights) and Astec Lifesciences Limited (99.789% voting rights). In a meeting on 2021-02-16, the COC considered a settlement request from the respondent but the settlement failed. The corporate debtor's last audited financial statements were for 2017-18, and the RP couldn't obtain updated financial information. In a meeting on 2021-09-16, the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, M/s Advance Nath Agri Chemicals …

**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 dated 2021-09-16, resolved to liquidate the corporate debtor by a

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

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**Application:** Given the COC's resolution and the absence of a resolution plan, the

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## Parties

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

## Timeline

- **2020-12-15 — CIRP Admi…**: The application under Section 9 of the Code for initiating Corporate Insolvency…
- **2021-02-16 — COC Meet…**: The 1st meeting of the COC discussed the agenda about the withdrawal of application…

## 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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