# In the matter of Shalibhadra Cottrade Pvt.  Ltd. IA 398 of 2022 in CP (IB) 10-MB-C-II-2019

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02423. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shalibhadra-cottrade-pvt-ltd-ia-398-of-2022-in-cp-ib-10-mb-c-ii-2019-7d79b89d

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of Shalibhadra Cottrade Pvt. Ltd., the Corporate Debtor, based on the instructions of the Committee of Creditors (CoC). The CoC determined that there was no possibility of resolution for the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by Bank of Baroda, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Vikas Prakash Gupta was appointed as the Interim Resolution Professional (IRP).

## Facts

Bank of Baroda, as a Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Shalibhadra Cottrade Pvt. Ltd. Mr. Vikas Prakash Gupta was appointed as the Interim Resolution Professional (IRP). A public announcement was made, inviting claims from creditors. The IRP received claims from Bank of Baroda and other financial creditors including Axis Bank, Shriram City Union Finance, RBL Bank Ltd, HDFC Bank Ltd. and IndusInd Bank Ltd. The Committee of Creditors (CoC) was constituted, and a resolution to appoint a Resolution Professional (RP) was passed. Form G was published to invite Expression of Interest (EoI) for resolution plans. However, the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be admitted based on the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC) allows for the liquidation of

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**Reasoning:** The CoC, with a majority of 89.40%, approved the liquidation of the Corporate Debtor,

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**Interpretation:** Section 33(1) grants significant weight to the CoC's decision regarding

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**Application:** The CoC's decision, supported by the required majority, justified the admission

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Arun Ka…
- **Respondents:** Shalibhadra…

## Timeline

- **2019-10-22 — Order for CIRP…**: The Adjudicating Authority issued an order for the initiation of the Corporate Insolvency…
- **2019-11-04 — Public Announcement of…**: The Interim Resolution Professional (IRP) published a public announcement of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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