# 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-02411. The case pertains to an application filed by the Resolution Professional (RP) seeking…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02411
- **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-feb20c11

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Shalibhadra Cottrade Pvt. Ltd., due to the absence of a viable resolution plan. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition by Bank of Baroda (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, 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). The IRP published a public announcement inviting claims from creditors. Claims were received 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 later reconstituted. The CoC decided against extending the CIRP and unanimously voted for the liquidation of the Corporate Debtor. The RP filed IA 487 of 2021 for

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## Issues and analysis

### Issue 1: Whether the application for liquidation of …

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

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

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**Interpretation:** Section 33(1) grants the CoC the authority to decide on liquidation if

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

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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 passed 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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