# In the matter of Juku Orchem Pvt. Ltd. MA-81-2021 in IA(IBC)-806(CHE)-2022 in CP-748-IB-2018

> NCLT judgment dated 2022-11-23. Citation: TCN-2022-NCLT-00363. The case involves an application (IA/IBC/806(CHE)/2022) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 23 Nov 2022
- **Citation:** TCN-2022-NCLT-00363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/juku-orchem-pvt-ltd-ma-81-2021-in-iaibc-806che-2022-in-cp-748-ib-2018-9f313ac9

## Summary

### Background

The case involves an application (IA/IBC/806(CHE)/2022) filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Juku Orchem Pvt. Ltd., under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. An earlier application (MA/81/2021) was filed under Section 19(1)(2) of the same code, seeking directions for the Respondent to furnish financial statements and other documents. The Corporate Debtor was admitted into CIRP vide order dated 02.03.2022 in CP/748/IB/2018. The RP was appointed on 03.01.2022. The CIRP period was extended by 90 days on 14.03.2022. Despite issuing Form-G three times, no resolution plan was received.

## Facts

The Corporate Debtor, Juku Orchem Pvt. Ltd., was admitted into CIRP on 02.03.2022. The Resolution Professional (RP), Mr. Chandrasekhar Sagutoor, was appointed on 03.01.2022. The Corporate Debtor's assets consist of two manufacturing facilities in Tamil Nadu. Certain third parties are in the premises of one facility, and the properties have not been handed over to the RP. The CIRP period was extended by 90 days on 14.03.2022. The Committee of Creditors (CoC), comprising Indian Overseas Bank, voted with 100% majority on 27.06.2022 to liquidate the Corporate Debtor due to the absence of any resolution plan. The estimated liquidation cost is Rs. 13.96 Lakhs. The RP filed an application (IA/806/2022) seeking liquidation, and another application (MA/81/2021) seeking

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be approved given the CoC's …

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

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**Reasoning:** The CoC resolved with 100% majority to liquidate the Corporate Debtor due to the absence

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**Interpretation:** Section 33(2) provides a clear mechanism for liquidation when the CoC

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**Application:** In this case, the CoC's unanimous decision to liquidate the Corporate Debtor

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Appellants:** Mr.Chandrasekhar…
- **Respondents:** Juku Orchem Pvt.…; Poovazh…

## Timeline

- **2022-03-02 — Admission in…**: Corporate Debtor admitted to CIRP…
- **2022-01-03 — RP Appoin…**: Applicant appointed as the…

## Legal provisions

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

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