# In the matter of Chadalvada Infratech Limited IA (IBC)-332-2022 in CP (IB) No. 1-7-HDB-2020

> NCLT judgment dated 2022-04-11. Citation: TCN-2022-NCLT-03289. The case involves an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 11 Apr 2022
- **Citation:** TCN-2022-NCLT-03289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chadalvada-infratech-limited-ia-ibc-332-2022-in-cp-ib-no-1-7-hdb-2020-0f18f61f

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(1)(a) read with Section 34 of the Insolvency & Bankruptcy Code, 2016 (IBC) for directions for the liquidation of Chadalvada Infratech Limited, the Corporate Debtor. The Financial Creditor, State Bank of India, had initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor under Section 7 of the IBC. The petition was admitted on 2021-09-23, and G Madhusudhan Rao was appointed as the Interim Resolution Professional (IRP), later continuing as the Resolution Professional (RP). Despite issuing Expression of Interest (EOI), the RP received five incomplete EOIs. The RP requested submission of deficit documents, but no prospective resolution applicants

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## Facts

State Bank of India, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Chadalvada Infratech Limited, the Corporate Debtor, by filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC). The petition was admitted by the Adjudicating Authority on 2021-09-23, and G Madhusudhan Rao was appointed as the Interim Resolution Professional (IRP), later continuing as the Resolution Professional (RP). The RP issued Expression of Interest (EOI) and received five EOIs from prospective resolution applicants, but all were incomplete. The RP requested the submission of deficit documents within 5 days, but no prospective resolution applicants submitted the required documents. The RP convened the 4th Committee of Creditors (CoC)

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## Issues and analysis

### Issue 1: Whether the application for liquidation of Chadalvada Infratech Limited should be allowed due to …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation

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**Reasoning:** The Adjudicating Authority noted that no resolution plans were received during the entire

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**Interpretation:** The IBC prioritizes resolution but recognizes that liquidation is necessary

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**Application:** Since no resolution plan was received for Chadalvada Infratech Limited, and the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** State Bank of…
- **Respondents:** Chadalvada…
- **Advocates:** M. Vazra…

## Timeline

- **2020-01-07 — CP (IB)…**: The Financial Creditor, State Bank of India, filed a Petition under Section 7 of the Code…
- **2021-09-23 — Petition Ad…**: The Adjudicating Authority admitted the petition and appointed Shri. G Madhusudhan Rao as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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