# In the matter of Raghukul Cottex and Processing Pvt. Ltd. IA-733-2021 in CP (IB)-380-2019

> NCLT judgment dated 2022-03-30. Citation: TCN-2022-NCLT-03467. The case involves an application filed by Mr. Shalabh Kumar Daga, the Resolution Professional…

- **Court:** NCLT
- **Order date:** 30 Mar 2022
- **Citation:** TCN-2022-NCLT-03467
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raghukul-cottex-and-processing-pvt-ltd-ia-733-2021-in-cp-ib-380-2019-38cc5677

## Summary

### Background

The case involves an application filed by Mr. Shalabh Kumar Daga, the Resolution Professional (RP) of the corporate debtor, M/s Raghukul Cottex & Processing Pvt. Ltd., under Sections 33 and 34 of the Insolvency and Bankruptcy Code, 2016, for the liquidation of the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by Bank of India under Section 7 of the Code, which was admitted by the Adjudicating Authority on 18.12.2020. Mr. Shalabh Kumar Daga was appointed as the Interim Resolution Professional (IRP) and later confirmed as the RP. The corporate debtor had filed an appeal against the initiation of CIRP, which was dismissed by the NCLAT. The CoC explored resolution plans but ultimately decided to liquidate

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## Facts

Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Raghukul Cottex & Processing Pvt. Ltd., leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority admitted the application on 18.12.2020. Mr. Shalabh Kumar Daga was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The corporate debtor challenged the initiation of CIRP by filing an appeal before the NCLAT, which was dismissed on 08.07.2021. The CoC convened multiple meetings to explore resolution plans. Despite efforts, no resolution plan was forthcoming. In a meeting held on 24.08.2021, the CoC unanimously resolved to liquidate the corporate debtor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Raghukul Cottex & Processing Pvt. Ltd., should be liquidated …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The CoC, in its meeting held on 24.08.2021, unanimously resolved to liquidate the

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**Interpretation:** Section 33 provides a clear directive for liquidation when the CIRP fails to

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor, coupled

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## Parties

- **Judges:** DEEPTI M…; KAUSHALENDRA…
- **Appellants:** Shalabh Kum…
- **Respondents:** M/s Raghukul…; Bank of…
- **Advocates:** Nitu Chat…; Shalabh Kum…

## Timeline

- **2020-12-18 — CIRP Init…**: The Adjudicating Authority admitted the application filed by Bank of India under Section…
- **2020-12-29 — Appeal Filed by…**: Corporate debtor filed the appeal before the Hon'ble NCLAT challenging the initiation of…

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