# In the matter of Sainov Spirits Pvt. Ltd.

> NCLT judgment dated 2023-05-18. Citation: TCN-2023-NCLT-03280. The case involves an application (IA-2358/2021) filed for the liquidation of Sainov Spirits…

- **Court:** NCLT
- **Order date:** 18 May 2023
- **Citation:** TCN-2023-NCLT-03280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sainov-spirits-pvt-ltd-74b73baa

## Summary

### Background

The case involves an application (IA-2358/2021) filed for the liquidation of Sainov Spirits Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Resolution Professional (RP) filed the application enclosing a resolution dated 2021-04-24, passed by the Committee of Creditors (CoC) with 100% voting share, resolving to liquidate the Corporate Debtor (CD). The CoC's decision was based on the fact that no resolution plan was approved within the stipulated time frame.

## Facts

Corporation Bank initiated Corporate Insolvency Resolution Process (CIRP) against Sainov Spirits Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC) resolved with 100% voting share to liquidate Sainov Spirits Private Limited, the Corporate Debtor. This decision was made because no resolution plan was approved within the stipulated timeframe. The Resolution Professional (RP) then filed an application (IA-2358/2021) before the Adjudicating Authority (NCLT) seeking an order for liquidation. The CoC's resolution was passed on 2021-04-24. The Adjudicating Authority considered the provisions of Section 33 of the IBC, 2016, which deals with the initiation of liquidation. The Corporate Debtor is Sainov Spirits Private

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Sainov …

**Ratio:** Section 33(2) of the IBC, 2016, mandates that where the Resolution Professional intimates

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**Reasoning:** The court reasoned that the CoC had approved the liquidation of the Corporate Debtor with

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that the Adjudicating

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**Application:** In this case, the CoC approved the liquidation of Sainov Spirits Private

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** Corporatio…
- **Respondents:** Sainov Spirits…; M/s. Sainov…

## Timeline

- **2021-04-24 — CoC Resol…**: The Committee of Creditors passed a resolution with 100% voting share to liquidate the…
- **2023-05-18 — Order Del…**: The Adjudicating Authority ordered the liquidation of Sainov Spirits Private Limited and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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