# In the matter of Raunak Mercantile and Trading Private Limited

> NCLT judgment dated 2024-05-02. Citation: TCN-2024-NCLT-01468. The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent…

- **Court:** NCLT
- **Order date:** 2 May 2024
- **Citation:** TCN-2024-NCLT-01468
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raunak-mercantile-and-trading-private-limited-696de3f1

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Raunak Mercantile and Trading Private Limited. The CIRP was initiated on 2019-10-14 based on an application by Katyayan Mercantile and Trading Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC). As no resolution plan was received, the Committee of Creditors (CoC) decided to liquidate the Corporate Debtor on 2021-03-15. The Tribunal approved the liquidation on 2022-12-08 and appointed a liquidator.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Raunak Mercantile and Trading Private Limited was initiated on 2019-10-14 based on an application by Katyayan Mercantile and Trading Private Limited, the Operational Creditor. No resolution plan was received, leading the Committee of Creditors (CoC) to decide on 2021-03-15 to liquidate the Corporate Debtor. The Tribunal approved the liquidation on 2022-12-08 and appointed Mr. Ankur Kumar as the liquidator. Public announcements were made, and claims were invited from stakeholders with a submission deadline of 2023-01-21. The liquidator received claims and submitted a preliminary report stating that the assets of the Corporate Debtor were inventories. An e-auction was conducted on 2023-02-28, and the assets were sold

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor, Raunak Mercantile and Trading Pvt. Ltd., …

**Ratio:** The ratio is based on the provisions of Section 54 of the Insolvency and Bankruptcy Code,

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**Reasoning:** The Tribunal examined the submissions made by the liquidator and the documents annexed to

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**Interpretation:** The interpretation involves understanding the requirements of Section 54 of the

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**Application:** In this case, the Tribunal applied the ratio by examining the actions taken by

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** Ankur K…
- **Respondents:** Raunak Mercantile…; Katyayan Mercantil…

## Timeline

- **2019-10-14 — CIRP Comm…**: Corporate Insolvency Resolution Process was…
- **2021-03-15 — Liquidation D…**: The members of the Committee of Creditors (CoC)…

## 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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