# In the matter of Smilecare Multi Speciality Hospitals Private Limited

> NCLT judgment dated 2024-06-26. Citation: TCN-2024-NCLT-01117. The case involves the liquidation process of Smilecare Multi Speciality Hospitals India Private…

- **Court:** NCLT
- **Order date:** 26 Jun 2024
- **Citation:** TCN-2024-NCLT-01117
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/smilecare-multi-speciality-hospitals-private-limited-b6183b81

## Summary

### Background

The case involves the liquidation process of Smilecare Multi Speciality Hospitals India Private Limited. Reliance Commercial Finance Limited initiated the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC). Rachamallu Ramachandra Reddy was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Subsequently, an application was filed for the liquidation of the Corporate Debtor, and the applicant was confirmed as the Liquidator. The liquidator conducted Stakeholders Consultation Committee (SCC) meetings and issued sale notices. Eventually, the Corporate Debtor was sold as a going concern to Dr. Malladhi Varahagiri Reddy.

## Facts

Reliance Commercial Finance Limited initiated CIRP against Smilecare Multi Speciality Hospitals India Private Limited under Section 7 of IBC. Rachamallu Ramachandra Reddy was appointed as IRP and later RP. An application was filed for liquidation, and the applicant was confirmed as Liquidator. The Liquidator conducted SCC meetings and issued sale notices. The Corporate Debtor was sold as a going concern to Dr. Malladhi Varahagiri Reddy for Rs. 1,50,22,718. The Liquidator distributed the realized amount to stakeholders as per Section 53 of the Code. The Liquidator filed an application for closure of the liquidation process. The NCLT considered the application and relevant regulations and case laws. The secured financial creditor (Reliance Commercial Finance Limited) and

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## Issues and analysis

### Issue 1: Whether the liquidation process of the Corporate Debtor should be closed as the Corporate Debtor …

**Ratio:** Regulation 45(3)(a) of the IBC (Liquidation Process) Regulations, 2016 allows for the

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**Reasoning:** The court considered that the Corporate Debtor was sold as a going concern, and the

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**Interpretation:** The regulation provides a mechanism for closing the liquidation process when

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**Application:** The court applied the regulation to the specific facts of the case, noting that

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Reliance Commercia…
- **Respondents:** Smilecare Multi…; Smile care Multi…

## Timeline

- **2019-12-17 — CIRP Init…**: The Financial Creditor, Reliance Commercial Finance Limited, filed an application under…
- **2020-01-20 — Appointment…**: Mr. Rachamallu Ramachandra Reddy was appointed as Resolution Professional (RP) in the 1st…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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