# In the matter of Shirani Automotive Private Limited IA-260(MP)2022 in CP(IB)-22(MP)2021

> NCLT judgment dated 2023-01-20. Citation: TCN-2023-NCLT-04969. The case involves an application filed by the Resolution Professional (RP) of Shirani…

- **Court:** NCLT
- **Order date:** 20 Jan 2023
- **Citation:** TCN-2023-NCLT-04969
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirani-automotive-private-limited-ia-260mp2022-in-cpib-22mp2021-29e59417

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Shirani Automotive Private Limited under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the liquidation process for the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 10 of the IBC, which was admitted on 2021-12-23. Mr. Ashutosh Gokhale was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Kamal Agarwal. Despite the CIRP, no resolution plan was received within the stipulated 330-day period. The Committee of Creditors (COC), consisting solely of Volkswagen Finance Private Limited, resolved to liquidate the corporate debtor and approved a

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## Facts

Shirani Automotive Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 10 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated on 2021-12-23. Kamal Agarwal was appointed as the Resolution Professional (RP), replacing the initial Interim Resolution Professional (IRP), Ashutosh Gokhale. Volkswagen Finance Private Limited was the sole member of the Committee of Creditors (COC) with 100% voting rights. Despite the CIRP, no resolution plan was received within the maximum permissible period of 330 days, which expired on 2022-11-18. The COC resolved to liquidate the corporate debtor in its meeting on 2022-12-21 and approved a liquidation cost of Rs 3,00,000, to be borne by Volkswagen Finance Private

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, …

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

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**Reasoning:** The Adjudicating Authority noted that the CIRP had failed to produce a resolution plan

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**Interpretation:** Section 33(1) is interpreted to mean that if the CIRP does not result in a

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**Application:** Since the CIRP for Shirani Automotive Private Limited did not yield a

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Kamal Ag…
- **Respondents:** Shirani Automotive…; Volkswagen…
- **Advocates:** Pratik Tr…; Kamal Ag…; +1 more

## Timeline

- **2021-12-23 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for Shirani Automotive Private…
- **2022-04-07 — RP Appoin…**: Kamal Agarwal appointed as Resolution Professional (RP), replacing the initial Interim…

## 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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