# In the matter of Saraswati Udyog India Limited IA-518-CHE-2023 in CP(IB)-185-CHE-2020

> NCLT judgment dated 2023-05-09. Citation: TCN-2023-NCLT-03443. The application IA/518/CHE/2023 was filed in CP(IB)/185/CHE/2020 under Section 33(2) and 60(5)…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03443
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saraswati-udyog-india-limited-ia-518-che-2023-in-cpib-185-che-2020-58b9a561

## Summary

### Background

The application IA/518/CHE/2023 was filed in CP(IB)/185/CHE/2020 under Section 33(2) and 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking an order for liquidation of Saraswati Udyog India Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2021-10-04, and the applicant, Subbiah Muthusamy, was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The CoC comprised City Union Bank and Karur Vysya Bank with 70% and 30% voting power, respectively. The CIRP period of 180 days expired on 2022-04-04. An EOI was issued on 2022-02-07, but only one conditional Resolution Plan was received, which the CoC rejected in its 9th meeting held on 2022-08-12. The CoC also decided to go for liquidation.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Saraswati Udyog India Limited was initiated on 2021-10-04. Subbiah Muthusamy was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Committee of Creditors (CoC) comprised City Union Bank and Karur Vysya Bank with 70% and 30% voting power, respectively. The CIRP period of 180 days expired on 2022-04-04. An Expression of Interest (EOI) was issued on 2022-02-07, but only one conditional Resolution Plan was received. The CoC rejected the conditional Resolution Plan in its 9th meeting held on 2022-08-12 and decided to go for liquidation. The applicant filed I.A. No. 1053 (CHE)/2022 for liquidation, which was initially dismissed due to the failure to enclose voting

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Saraswati Udyog India Limited, …

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

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**Reasoning:** The Adjudicating Authority considered the records and submissions, noting that the CoC

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the CoC,

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**Application:** In this case, the CoC's unanimous resolution to liquidate, coupled with the

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## Parties

- **Judges:** SANJIV…; AVINASH K.…
- **Appellants:** Subbiah Mut…
- **Respondents:** Saraswati Udyog…

## Timeline

- **2021-10-04 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2022-02-07 — EOI Issu…**: Applicant issued…

## 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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