# In the matter of Shree Ramrajya Cotex Private Limited

> NCLT judgment dated 2023-11-09. Citation: TCN-2023-NCLT-00791. The case pertains to an application filed by the Resolution Professional (RP) of Shree Ramrajya…

- **Court:** NCLT
- **Order date:** 9 Nov 2023
- **Citation:** TCN-2023-NCLT-00791
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-ramrajya-cotex-private-limited-5bcd088f

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Shree Ramrajya Cotex Private Limited under Section 33(1)(b) read with Section 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the Corporate Debtor and the appointment of a liquidator. The Corporate Debtor was admitted into CIRP on 03/02/2023, following an application by Raj Radhe Finance Limited under Section 7 of the Code. Despite inviting Expression of Interest (EoI), no resolution plan was received. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor with 100% voting.

## Facts

Shree Ramrajya Cotex Private Limited was incorporated under the Companies Act, 1956. Raj Radhe Finance Limited initiated CIRP against the Corporate Debtor under Section 7 of the IBC. The Corporate Debtor was admitted into CIRP on 03/02/2023, and an IRP was appointed. A public announcement was made to invite claims from creditors, with a deadline of 20/02/2023. The Committee of Creditors (CoC) was formed, consisting of a sole financial creditor. An Expression of Interest (EoI) was invited, but no resolution plan was received by the deadline of 19/04/2023. The CoC then resolved to liquidate the Corporate Debtor with 100% voting. The assets of the Corporate Debtor were valued at Rs. 8,044, insufficient to cover CIRP costs. The RP filed an application for liquidation under

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Shree Ramrajya Cotex Private …

**Ratio:** The commercial decision of the Committee of Creditors (CoC) is paramount and

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**Reasoning:** The CoC, with a 100% majority, resolved to liquidate the Corporate Debtor due to the

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**Interpretation:** Section 33 of the IBC, interpreted in conjunction with the Supreme Court's

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was based on

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Keyur J.…
- **Respondents:** Shree Ramrajya…

## Timeline

- **2023-02-03 — CIRP Init…**: Corporate Debtor admitted into CIRP following an application by Raj Radhe Finance Limited…
- **2023-02-07 — Public Annou…**: IRP issued a public…

## 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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