# In the matter of Periwinkle Herbals Private Limited

> NCLT judgment dated 2023-11-23. Citation: TCN-2023-NCLT-00598. The case involves an application filed by the Resolution Professional (RP) of Periwinkle…

- **Court:** NCLT
- **Order date:** 23 Nov 2023
- **Citation:** TCN-2023-NCLT-00598
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/periwinkle-herbals-private-limited-1d2c61cf

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Periwinkle Herbals Private Limited, seeking the initiation of liquidation proceedings for the Corporate Debtor. The application was filed based on the decision of the Committee of Creditors (CoC) in their 3rd meeting. The Corporate Insolvency Resolution Process (CIRP) was initiated against Periwinkle Herbals Private Limited based on an application filed by Bansal Trading Company, an Operational Creditor. The Adjudicating Authority admitted the application and appointed Mr. Ahsan Ahmad as the Interim Resolution Professional (IRP). The CoC was constituted, and meetings were held where the CoC resolved to appoint Mr. Ahsan Ahmad as the RP and later decided to seek liquidation of the Corporate

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## Facts

M/s. Bansal Trading Company, an Operational Creditor, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Periwinkle Herbals Private Limited, the Corporate Debtor. The Adjudicating Authority admitted the application on 2022-03-15 and appointed Mr. Ahsan Ahmad as the Interim Resolution Professional (IRP). The IRP made a public announcement and received one claim from the Operational Creditor. The Committee of Creditors (CoC) was constituted on 2022-04-07. The CoC, in its 3rd meeting on 2022-09-14, rejected the extension of the CIRP period and approved the filing of an application seeking liquidation of the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The CoC cited the absence of a resolution

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

**Ratio:** The commercial decision of the Committee of Creditors (CoC) is considered

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**Reasoning:** The court reasoned that the CoC, with a 100% majority, had resolved to seek liquidation

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

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**Application:** In this case, the CoC's decision to seek liquidation was based on the specific

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Bansal…
- **Respondents:** M/s. Periwinkle…
- **Advocates:** Sanyam…

## Timeline

- **2022-10-20 — Application for…**: The Corporate Debtor filed an application before the Adjudicating Authority under Section…
- **2022-03-15 — Admission of CIRP…**: The Adjudicating Authority admitted the application filed by M/s. Bansal Trading Company…

## 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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