# In the matter of S. Kumars Limited

> NCLT judgment dated 2024-07-25. Citation: TCN-2024-NCLT-00954. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 25 Jul 2024
- **Citation:** TCN-2024-NCLT-00954
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-kumars-limited-456613d5

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, by AAA Insolvency Professionals LLP, the Resolution Professional (RP) of Greenleaf Commerce Pvt Ltd, seeking a liquidation order. The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP) was appointed. The Committee of Creditors (CoC) was formed, but reconstituted due to additional claims. The IRP was replaced, and the Applicant was appointed as the RP. Despite attempts to find a resolution plan, including publishing Form G twice, no viable plan was submitted. The CoC eventually resolved to liquidate the company.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against S. Kumars Limited. AAA Insolvency Professionals LLP was appointed as the Resolution Professional (RP) after an initial Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed and later reconstituted due to additional claims. The RP published Form G twice to invite Expression of Interest (EoI) from Prospective Resolution Applicants (PRAs). Despite receiving interest from several PRAs, only one resolution plan was submitted after the first EoI, and no plan was submitted after the second EoI. The CoC, after considering the expiration of the 270-day CIRP period and the lack of viable resolution plans, resolved to liquidate the company with 99.993% votes. The RP sought a

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, …

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

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**Reasoning:** The CoC, after exhausting all possibilities for resolution and considering the expiration

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when resolution efforts

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**Application:** In this case, the CoC's decision to liquidate, coupled with the failure to

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** AAA Insolvency…
- **Respondents:** M/s S. Kumars…

## Timeline

- **2019-01-01 — CIRP Init…**: CP No. (IB)-3707(MB)/201…
- **2022-11-18 — Admission by…**: CP No. (IB)-3707(MB)/2019 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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