# In the matter of Basukinath Agro Private Limited IA (IB) No. 949-KB-2022 in CP (IB) No. 835-KB-2018

> NCLT judgment dated 2022-05-25. Citation: TCN-2022-NCLT-02602. The case involves an application under section 60(5) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-02602
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/basukinath-agro-private-limited-ia-ib-no-949-kb-2022-in-cp-ib-no-835-kb-2018-bd24a670

## Summary

### Background

The case involves an application under section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with rule 11 of the National Company Law Tribunal Rules, 2016. The Corporate Insolvency Resolution Process (CIRP) of Basukinath Agro Private Limited was initiated on 05 November 2019, following a Company Petition filed under section 9 by Poddar Business Private Limited, the Operational Creditor. Parag Chakrabarti was appointed as the Interim Resolution Professional (IRP). The IRP published Form A and invited claims from creditors on 11 November 2019, subsequently forming a Committee of Creditors (CoC).

## Facts

Poddar Business Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Basukinath Agro Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on 05 November 2019, and Parag Chakrabarti was appointed as the Interim Resolution Professional (IRP). The IRP invited claims from creditors and formed a Committee of Creditors (CoC). The CoC initially did not appoint Registered Valuers, leading to intervention by the Adjudicating Authority. Two Registered Valuers were later appointed. The Forensic Auditor submitted a report. The Corporate Debtor's liquidity position deteriorated significantly. CoC meetings were infrequent. The CoC did not pay CIRP costs, which were covered by the Applicant (presumably the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be dissolved given its lack of assets and the resolution of the …

**Ratio:** The principle that if a corporate debtor has no assets and the CIRP has been deemed a

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**Reasoning:** The court reasoned that since the Corporate Debtor had no assets and the CoC had resolved

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**Interpretation:** This interprets the IBC to allow for the dissolution of a corporate debtor when

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**Application:** The court applied this principle to the specific facts of the case, noting that

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Parag Chakr…
- **Respondents:** Basukinath Agro…; Suresh Kumar…

## Timeline

- **2019-11-05 — CIRP Init…**: Adjudicating Authority ordered initiation of Corporate Insolvency Resolution Process…
- **2019-11-11 — Public Annou…**: IRP published Form A and invited claims from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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