# In the matter of Karuturi Ceramics Private Limited

> NCLT judgment dated 2025-01-08. Citation: TCN-2025-NCLT-00655. The case involves an application under Section 33(2) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Jan 2025
- **Citation:** TCN-2025-NCLT-00655
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karuturi-ceramics-private-limited-945471e0

## Summary

### Background

The case involves an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Karuturi Ceramics Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2024-04-24. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made inviting claims. The IRP received one claim from the Financial Creditor and constituted a Committee of Creditors (CoC). The CoC confirmed the Applicant as the RP and approved eligibility criteria for Prospective Resolution Applicants (PRAs). Form-G was published, inviting Expressions of Interest (Eol).

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Karuturi Ceramics Private Limited on 2024-04-24. Mr. Naga Bhushan Bhagawati was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). A public announcement was made, inviting claims from creditors. The IRP received one claim from the State Bank of India. The Committee of Creditors (CoC) was constituted and held several meetings to discuss the resolution process. The CoC approved the eligibility criteria for Prospective Resolution Applicants (PRAs) and published Form-G, inviting Expressions of Interest (Eol). Despite extending the deadline for submission of resolution plans, no plans were received. A forensic audit revealed no avoidance

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

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

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**Reasoning:** The Committee of Creditors (CoC) voted for liquidation of the Corporate Debtor with 100%

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**Interpretation:** Section 33(2) empowers the Adjudicating Authority to order liquidation when the

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**Application:** In this case, the CoC voted for liquidation with 100% majority after no

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** State Bank of…
- **Respondents:** Karuturi Ceramics…; Karuturi Ceramics…

## Timeline

- **2024-04-24 — CIRP Init…**: The Tribunal admitted the Corporate Debtor into Corporate Insolvency Resolution Process…
- **2024-04-24 — Appointment…**: The Applicant was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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