# 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-03452. The application was filed by the Resolution Professional seeking an order for liquidation of…

- **Court:** NCLT
- **Order date:** 9 May 2023
- **Citation:** TCN-2023-NCLT-03452
- **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-2020-8d2efed5

## Summary

### Background

The application was filed by the Resolution Professional seeking an order for liquidation of the Corporate Debtor after the Committee of Creditors unanimously resolved to liquidate the company.

## Facts

The Corporate Insolvency Resolution Process ( CIRP ) of Saraswati Udyog India Limited was initiated on October 4, 2021. Subbiah Muthusamy was appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP). The Committee of Creditors (CoC) consists of City Union Bank and Karur Vysya Bank, holding 70% and 30% voting power, respectively. The 180-day CIRP period expired on April 4, 2022. The Resolution Professional issued an Expression of Interest (EOI) on February 7, 2022, but only one conditional Prospective Resolution Plan was received. In its 9th meeting on August 12, 2022, the CoC rejected this conditional plan and decided to proceed with liquidation. The resolution for liquidation was unanimously approved by the CoC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated as per the resolution passed by the Committee of …

**Ratio:** An application for liquidation of the Corporate Debtor, filed under Section 33(2) and

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**Reasoning:** The Committee of Creditors, in its 10th meeting on February 13, 2023, unanimously

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**Interpretation:** The Tribunal interpreted Section 33(2) of the IBC, 2016, to mean that if the

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**Application:** Given the unanimous resolution by the CoC for liquidation and the proper filing

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## Parties

- **Judges:** SANJIV…; AVINASH K.…
- **Appellants:** Subbiah Mut…; Resolution…
- **Respondents:** Saraswati Udyog…
- **Advocates:** N. P Vijay…

## Timeline

- **October 4, 2021 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **February 7, 2022 — EOI Issu…**: The 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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