# In the matter of Danesita Phadnis Food Industries Ltd.

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02445. The case involves an application (I.A. No. 7/2024) filed by the Resolution Professional, Ms.…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02445
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/danesita-phadnis-food-industries-ltd-f82f86d1

## Summary

### Background

The case involves an application (I.A. No. 7/2024) filed by the Resolution Professional, Ms. Palak Swapnil Desai, seeking the liquidation of Danesita Phadnis Food Industries Limited, the Corporate Debtor, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an order dated 21.06.2023 in Company Petition No. 227/MB/2023, filed by B.K. Interiors, the Operational Creditor. The Committee of Creditors (CoC) expressed that the Corporate Debtor was not a going concern and had minimal assets in scrap condition. The CoC disapproved the publication of Expression of Interest and Form G and resolved with 100% voting to liquidate the Corporate Debtor.

## Facts

B.K. Interiors initiated Corporate Insolvency Resolution Process (CIRP) against Danesita Phadnis Food Industries Limited, the Corporate Debtor, by filing a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2023-06-21. The Committee of Creditors (CoC) determined that the Corporate Debtor was not a going concern due to being non-operational for 5-6 years, having no registered office, failing to file statutory returns, and lacking updated books of accounts. The Corporate Debtor's assets consisted of scrap machinery located at a third-party premises. The CoC resolved with 100% voting to liquidate the Corporate Debtor, disapproving the publication of Expression of Interest in Form G. The Resolution Professional, Ms. Palak

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Danesita Phadnis Food Industries Limited, should be liquidated under …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The Committee of Creditors (CoC) determined that the Corporate Debtor was not a going

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**Interpretation:** Section 33(2) provides the legal basis for liquidating a corporate debtor when

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**Application:** The Tribunal applied Section 33(2) to the facts of the case, noting the CoC's

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## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Appellants:** B.K. Interiors…
- **Respondents:** DANESITA PHADNIS…

## Timeline

- **2023-06-21 — Admission of…**: The Tribunal admitted the petition under Section 9 of the Code, filed by B.K. Interiors,…
- **2023-10-27 — Third Meeting of…**: The Committee of Creditors expressed their opinion that the Corporate Debtor was not a…

## 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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