# In the matter of FE Aagrochem Pvt. Ltd. I.A. 3589-ND-2020 in Company Petition No. (IB)-1311 (ND)-2018

> NCLT judgment dated 2022-02-21. Citation: TCN-2022-NCLT-04035. The case involves an application filed by the Resolution Professional under Section 33(1)(a) of…

- **Court:** NCLT
- **Order date:** 21 Feb 2022
- **Citation:** TCN-2022-NCLT-04035
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fe-aagrochem-pvt-ltd-ia-3589-nd-2020-in-company-petition-no-ib-1311-nd-2018-5a9baf65

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of FE Aagrochem Private Limited, the Corporate Debtor. Deepak Khandelwal, an Operational Creditor, initially filed an application under Section 9 of the Code, which led to the initiation of the Corporate Insolvency Resolution Process (CIRP). Prabhakar Kumar was appointed as the Interim Resolution Professional. Subsequently, Canara Bank, the sole member of the Committee of Creditors (CoC), appointed the applicant as the Resolution Professional. Form G was published to invite Expression of Interest, but no resolution plan was received.

## Facts

Deepak Khandelwal, an operational creditor of FE Aagrochem Private Limited, initiated the Corporate Insolvency Resolution Process (CIRP) by filing an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application was admitted, and Prabhakar Kumar was appointed as the Interim Resolution Professional. Subsequently, Canara Bank, the sole member of the Committee of Creditors (CoC), appointed a new Resolution Professional. Form G was published to invite Expression of Interest (EOI) from prospective resolution applicants. Despite extending the deadline for submission of EOIs due to the COVID-19 pandemic and related lockdowns, no resolution plan was received. The CoC rejected a request from a proposed resolution applicant to remove a stipulated

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1) of the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code mandates liquidation when no

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**Reasoning:** The Committee of Creditors (CoC) determined that there was no feasibility and viability

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that if the CIRP fails to

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**Application:** In this case, since no resolution plan was received despite multiple attempts

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** Deepak Khan…
- **Respondents:** M/s FE Aagrochem…; M/s FE Aagrochem…

## Timeline

- **2019-09-03 — Tribunal…**: Tribunal admitted the application under Section 9 and appointed Mr. Prabhakar Kumar as…
- **2020-01-13 — Appointment of…**: Tribunal appointed the applicant…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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