# In the matter of Viswatma Merchandise Private Limited

> NCLT judgment dated 2023-07-27. Citation: TCN-2023-NCLT-02316. The case involves an application (IA(IBC)/1024(KB)2023) filed under section 33(2) of the…

- **Court:** NCLT
- **Order date:** 27 Jul 2023
- **Citation:** TCN-2023-NCLT-02316
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/viswatma-merchandise-private-limited-65ebb9fe

## Summary

### Background

The case involves an application (IA(IBC)/1024(KB)2023) filed under section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Resolution Professional (RP) of Viswatma Merchandise Private Limited, the Corporate Debtor, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Viswatma Merchandise Private Limited based on a petition filed by State Bank of India, the Financial Creditor, under section 7 of the IBC. Mr. Arun Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the RP.

## Facts

State Bank of India initiated CIRP against Viswatma Merchandise Private Limited under Section 7 of IBC. Arun Kumar Gupta was appointed as IRP and later RP. Public announcements were made to invite claims from creditors. A Committee of Creditors (CoC) was formed with State Bank of India as the sole petitioning Financial Creditor. Several meetings of the CoC were held. Prospective resolution applicants (PRAs) were invited, but no resolution plan was received. The RP appointed valuers and conducted a transaction audit, which did not reveal any avoidance transactions. The CoC decided to liquidate the Corporate Debtor with 100% voting share. The 180-day CIRP period expired without a resolution plan. The last audited accounts were filed for the year ended 31/03/2013. The

…

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Viswatma Merchandise Private …

**Ratio:** Section 33(1)(a) of the IBC mandates the Adjudicating Authority to pass an order of

…

**Reasoning:** The court reasoned that the conjoint reading of section 33(1)(a) and 33(2) of the IBC

…

**Interpretation:** The interpretation of Section 33 of the IBC emphasizes the mandatory nature of

…

**Application:** In this specific case, the RP informed the Adjudicating Authority that no

…

## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Viswatma Merchandi…
- **Advocates:** Arik Ban…

## Timeline

- **2022-12-29 — Order for Initiation of…**: The Adjudicating Authority ordered the initiation of CIRP against Viswatma Merchandise…
- **2022-12-31 — Public Annou…**: Public announcements were published in 'Financial Express' and 'Aajkal' inviting claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/viswatma-merchandise-private-limited-65ebb9fe