# In the matter of Khadyota Kishan Foundation

> NCLT judgment dated 2023-07-27. Citation: TCN-2023-NCLT-02310. The case involves an application for the liquidation of Khadyota Kishan Foundation, a Corporate…

- **Court:** NCLT
- **Order date:** 27 Jul 2023
- **Citation:** TCN-2023-NCLT-02310
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khadyota-kishan-foundation-02d3aa2d

## Summary

### Background

The case involves an application for the liquidation of Khadyota Kishan Foundation, a Corporate Debtor, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on 2022-11-09. The Resolution Professional (RP) filed the application after the Committee of Creditors (COC) unanimously resolved to liquidate the Corporate Debtor due to its non-operational nature, unavailability of books of accounts, and lack of cooperation from the suspended director. The RP was unable to prepare an information memorandum, appoint registered valuers, or identify preferential transactions due to these issues. The suspended director was arrested for defrauding suppliers and did not cooperate with the CIRP process. The COC determined that reviving the Corporate

…

## Facts

The Corporate Debtor, Khadyota Kishan Foundation, underwent Corporate Insolvency Resolution Process (CIRP) initiated on 2022-11-09. The Resolution Professional (RP), Usha Gayathri Kavi, was appointed. Public announcements were made in newspapers. The RP received only two claims from operational creditors. The business of the Corporate Debtor involved procuring goods and selling them at low prices through 'Kishan Ration Shops'. At the commencement of CIRP, Mr. Rajendran Jayaganesh was the sole director. Kumaraswamy Rajendran had ceased to be a director on 2020-06-18. The Corporate Debtor vacated its registered address, and no books of accounts were available. The suspended director, Mr. Rajendran Jayaganesh, was arrested for defrauding suppliers. The RP filed

…

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Khadyota Kishan Foundation, should …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass a liquidation

…

**Reasoning:** The Committee of Creditors (COC) unanimously resolved to liquidate the Corporate Debtor,

…

**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the COC, acting on

…

**Application:** In this case, the COC's decision to liquidate the Corporate Debtor was

…

## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Usha Gayath…
- **Respondents:** Khadyota Kishan…; Jyothi Labs…
- **Advocates:** Krithaj…; Geetha R…

## Timeline

- **2022-11-09 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2022-11-23 — Deadline for…**: Last date for receiving…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khadyota-kishan-foundation-02d3aa2d