# In the matter of Sudha Siva Traders Private Limited

> NCLT judgment dated 2024-09-12. Citation: TCN-2024-NCLT-00606. The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Sept 2024
- **Citation:** TCN-2024-NCLT-00606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sudha-siva-traders-private-limited-7b05fafd

## Summary

### Background

The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code, 2016, by Mrs. Mummaneni Yazra Laxmi, the Resolution Professional (RP) of M/s. Sudha Siva Traders Private Limited, the Corporate Debtor (CD). The RP sought an order to liquidate the Corporate Debtor under Section 33 of IBC, 2016, and to appoint the Resolution Professional as the Liquidator of the CD. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2023-11-17. The Committee of Creditors (CoC) resolved to liquidate the CD due to the low liquidation value and the absence of any resolution plan.

## Facts

M/s. Sudha Siva Traders Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2023-11-17. Mrs. Mummaneni Yazra Laxmi was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted, comprising Sujana Universal Industries Limited and the Commercial Taxes Department. The CoC, in its 4th meeting, resolved to liquidate the Corporate Debtor due to the low liquidation value of Rs.15,097.50 and the absence of any resolution plan. The RP put the liquidation resolution for voting, and it was approved by Sujana Universal Industries Limited, holding 6.38% voting rights, while the Commercial Taxes Department, holding 93.62% voting rights, did not vote.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Sudha Siva Traders Private Limited, should be liquidated under …

**Ratio:** Section 33 of the IBC, 2016, mandates the Adjudicating Authority to pass an order for

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**Reasoning:** The CoC resolved to liquidate the Corporate Debtor due to the low liquidation value and

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**Interpretation:** Section 33 of the IBC, 2016, provides that if no resolution plan is received or

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**Application:** In this case, the CoC resolved to liquidate the Corporate Debtor, and no

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## Parties

- **Judges:** JYOTI KUMAR…; Venkataraman…
- **Appellants:** Mummaneni Yazra…
- **Respondents:** M/s. Sudha Siva…; M/s.Sujana…

## Timeline

- **2023-11-17 — Commencement…**: Corporate Insolvency Resolution Process commenced for M/s. Sudha Siva Traders Private…
- **2023-11-22 — Public Annou…**: Public announcement made in Financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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