# In the matter of Karuturi Foods Private Limited

> NCLT judgment dated 2024-02-15. Citation: TCN-2024-NCLT-02579. The case pertains to the dissolution of M/s. Karuturi Foods Private Limited under the…

- **Court:** NCLT
- **Order date:** 15 Feb 2024
- **Citation:** TCN-2024-NCLT-02579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karuturi-foods-private-limited-c83001c6

## Summary

### Background

The case pertains to the dissolution of M/s. Karuturi Foods Private Limited under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 10.10.2017. The Committee of Creditors (CoC) recommended liquidation on 27.06.2018 due to a lack of interest from potential resolution applicants. The Adjudicating Authority initiated the liquidation process on 05.07.2018 and appointed Mr. Anil Kumar Birla as the Liquidator. The liquidator filed an application seeking dissolution of the Corporate Debtor and discharge from his responsibilities.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Karuturi Foods Private Limited on 10.10.2017. The Committee of Creditors (CoC) recommended liquidation on 27.06.2018. The liquidation process was initiated on 05.07.2018, and Mr. Anil Kumar Birla was appointed as the Liquidator. The liquidator made a public announcement on 27.07.2018, with a last date for submission of claims on 22.08.2018. The Corporate Debtor had a single financial creditor, Axis Bank Limited, with an admitted claim of Rs. 13,02,64,461.43. The Corporate Debtor ceased to carry on business since January 2015. The liquidator filed an application I.A No. 64 of 2021 for seeking distribution of unsold assets of the Corporate Debtor by assignment to Axis Bank. The Adjudicating

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, M/s. Karuturi Foods Private …

**Ratio:** Section 54 of the Insolvency & Bankruptcy Code, 2016, provides for the dissolution of

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**Reasoning:** The Adjudicating Authority noted that the liquidator had complied with all the conditions

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**Interpretation:** Section 54 of the IBC allows for the dissolution of a corporate debtor once the

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**Application:** In this case, the liquidator had completed the liquidation process, distributed

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** Anil Kumar…
- **Respondents:** M/s Karuturi…

## Timeline

- **2017-10-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-06-27 — CoC Recommends…**: Committee of Creditors (CoC) recommended liquidation due to lack of interest from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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