# In the matter of Sri Vatsa International Private Limited IA(IBC)-154(CHE)-2022 in IBA-31-2020

> NCLT judgment dated 2022-05-25. Citation: TCN-2022-NCLT-02605. The case involves an application filed by the Resolution Professional, Nithiyanantham…

- **Court:** NCLT
- **Order date:** 25 May 2022
- **Citation:** TCN-2022-NCLT-02605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-vatsa-international-private-limited-iaibc-154che-2022-in-iba-31-2020-7272f50b

## Summary

### Background

The case involves an application filed by the Resolution Professional, Nithiyanantham Ramachandran, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, M/s. Srivatsa International Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application filed by a financial creditor, Ligori Valan Irudhayaraj, under Section 7 of the I&B Code, 2016, which was admitted on 2020-04-03. An Interim Resolution Professional (IRP), Lakshmanan Krishnan, was initially appointed but later expressed difficulties due to the location of the Corporate Debtor. The Committee of Creditors (CoC) then appointed the current applicant as the Resolution Professional.

## Facts

M/s. Srivatsa International Private Limited faced Corporate Insolvency Resolution Process (CIRP) following an application under Section 7 of the I&B Code, 2016, by financial creditor Ligori Valan Irudhayaraj, admitted on 2020-04-03. Lakshmanan Krishnan was initially appointed as the Interim Resolution Professional (IRP) but expressed difficulties. Nithiyanantham Ramachandran was then appointed as the Resolution Professional. The Committee of Creditors (CoC) held multiple meetings where issues such as non-receipt of accounts and asset registers from the suspended director were discussed. An application under section 19(2) of IBC, 2016, was filed due to the director's non-cooperation. Claims amounting to Rs. 51,32,29,342/- were received. The CoC also discussed

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, M/s. …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the CoC's resolution, passed with a majority of

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

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**Application:** Given the CoC's resolution and the circumstances presented, the Adjudicating

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Appellants:** Nithiyanantham…
- **Respondents:** M/s. Srivatsa…

## Timeline

- **2020-03-04 — Admission of Application…**: Application filed by Ligori Valan Irudhayaraj under Section 7 of the I&B Code, 2016, was…
- **2020-03-04 — Appointment of Interim…**: Shri. Lakshmanan Krishnan was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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