# In the matter of Karan Processors Private Limited

> NCLT judgment dated 2025-04-09. Citation: TCN-2025-NCLT-00217. The case involves an application for the dissolution of M/s Karan Processors Private Limited,…

- **Court:** NCLT
- **Order date:** 9 Apr 2025
- **Citation:** TCN-2025-NCLT-00217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karan-processors-private-limited-98fc8d1d

## Summary

### Background

The case involves an application for the dissolution of M/s Karan Processors Private Limited, the Corporate Debtor, under Section 54 of the Insolvency and Bankruptcy Code, 2016. The corporate insolvency resolution process (CIRP) was initiated following an application by M/s Ultratreat Industrial Services, an Operational Creditor, under Section 9 of the IBC. The Adjudicating Authority admitted the application on 22.01.2020. Mr. Sameer Rastogi was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Amar Nath based on the decision of the Committee of Creditors (CoC). The CoC ultimately decided to liquidate the Corporate Debtor due to the non-operational state of its plant and machinery since February 2019. The liquidator then made a

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## Facts

M/s Karan Processors Private Limited (Corporate Debtor) underwent CIRP initiated by M/s Ultratreat Industrial Services (Operational Creditor) under Section 9 of IBC. The application was admitted on 22.01.2020. Mr. Sameer Rastogi was appointed as IRP, later replaced by Mr. Amar Nath. The CoC decided to liquidate the Corporate Debtor due to the non-operational state of its plant since February 2019. The liquidator made a public announcement inviting claims. The plant and machinery were in junk condition. The first CoC meeting was held on 20.02.2020. The Adjudicating Authority ordered liquidation on 26.11.2020. The liquidator made a public announcement on 29.11.2020. The liquidator appointed two valuers on 01.06.2020. The assets were sold via e-auction on 06.02.2021,

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the Insolvency …

**Ratio:** Section 54 of the IBC allows the Adjudicating Authority to order the dissolution of a

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**Reasoning:** The Adjudicating Authority noted that the liquidator had completed the liquidation

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**Interpretation:** Section 54 provides a mechanism for formally dissolving a corporate entity

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**Application:** Since the liquidator had completed all necessary steps in the liquidation

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## Parties

- **Judges:** Harnam Singh…; KAUSHALENDRA…
- **Appellants:** Amar…
- **Respondents:** Karan Processors…; Excise and…

## Timeline

- **2019-02-01 — Factory Ceases…**: The plant and machinery of the Corporate Debtor had not been in operation since February…
- **2020-01-22 — CIRP Init…**: The Adjudicating Authority admitted the application filed by M/s Ultratreat Industrial…

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