# In the matter of Staunch Natural Resources Private Limited

> NCLT judgment dated 2023-10-27. Citation: TCN-2023-NCLT-01009. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Oct 2023
- **Citation:** TCN-2023-NCLT-01009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/staunch-natural-resources-private-limited-eba93a2b

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, by Mr. Mukesh Khathuria, the Resolution Professional (RP) of Staunch Natural Resources Private Limited, seeking a liquidation order and the appointment of a liquidator. This application is based on a resolution passed by the Committee of Creditors (CoC) during its second meeting on July 20, 2022. The Corporate Insolvency Resolution Process (CIRP) was initiated after the Tribunal admitted CP(IB)518(MB)/2018 on June 10, 2022. The RP was appointed after the initiation of CIRP.

## Facts

The Resolution Professional (RP), Mr. Mukesh Khathuria, filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Staunch Natural Resources Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated on June 10, 2022. The RP was appointed after the initiation of CIRP. The Committee of Creditors (CoC), with Union Bank of India as the sole financial creditor, decided to liquidate the Corporate Debtor due to its non-operational status and lack of revival prospects. The CoC held its first meeting on July 22, 2022, and the second meeting on December 21, 2022. The RP informed the CoC that the company was no longer in operation and its office premises were closed for the last three years. The RP also

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## Issues and analysis

### Issue 1: Whether the application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, for …

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

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**Reasoning:** The NCLT considered the application filed by the Resolution Professional (RP), the

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a corporate debtor

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**Application:** In this case, the CoC decided to liquidate Staunch Natural Resources Private

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Mukesh Khathuria,…
- **Respondents:** Staunch Natural…; Lim Fa Pt…
- **Advocates:** Prakhar T…; Agam H.…

## Timeline

- **2018-01-01 — CP(IB)No. 518…**: Filing of CP(IB)No.…
- **2022-06-10 — Admission of CP(IB)518(M…**: The Tribunal admitted CP(IB)518(MB)/2018 and CIRP of Corporate Debtor viz. Staunch…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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