# In the matter of Sri Venkatesa Paper and Board Limited IA(IBC)-800(CHE)-2021 in CP-1353-IB-2018

> NCLT judgment dated 2023-02-13. Citation: TCN-2023-NCLT-04617. The case pertains to an application filed by the Resolution Professional (RP) regarding the…

- **Court:** NCLT
- **Order date:** 13 Feb 2023
- **Citation:** TCN-2023-NCLT-04617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-venkatesa-paper-and-board-limited-iaibc-800che-2021-in-cp-1353-ib-2018-4bf5fc77

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) regarding the Corporate Debtor, Sri Venkatesa Paper & Boards Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by the Respondent, Bank of India, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The RP was appointed as the Interim Resolution Professional (IRP). The RP issued a public announcement and received a claim from the Respondent, which was admitted. The RP also received a claim from Finquest Financial Solutions Private Limited, which was rejected. The Committee of Creditors (CoC), comprising only the Respondent, convened meetings and deferred the appointment of the Resolution Professional. The RP started performing

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## Facts

The Corporate Debtor, Sri Venkatesa Paper & Boards Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated by Bank of India under Section 7 of IBC, 2016. S. Muthuraj was appointed as the Interim Resolution Professional (IRP). A public announcement was made, and Bank of India submitted a claim of Rs.148,36,23,069/-, which was admitted. Finquest Financial Solutions Private Limited also submitted a claim, which was rejected by the IRP. The Committee of Creditors (CoC), consisting solely of Bank of India, convened meetings and deferred the appointment of the Resolution Professional. The IRP, while gathering information, discovered a charge on the Corporate Debtor's assets in favor of Assets Care and Reconstruction Enterprises Limited. The Bank of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can order the dissolution of the Corporate Debtor under Section …

**Ratio:** Section 54 of the IBC, 2016, stipulates that the Adjudicating Authority can order

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**Reasoning:** The court reasoned that the present application was filed by the Resolution Professional,

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**Interpretation:** Section 54 of the IBC, 2016, is interpreted strictly to mean that only a

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**Application:** In this case, since the application was filed by the Resolution Professional

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## Parties

- **Judges:** (RETD.) RAMALINGAM…; SAMEER…
- **Appellants:** S. Muth…
- **Respondents:** Venkatesa Paper &…; Bank of…

## Timeline

- **2019-12-11 — CIRP Init…**: Tribunal initiated Corporate Insolvency Resolution Process (CIRP) in respect of the…
- **2019-12-20 — Public Annou…**: Applicant issued a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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