# In the matter of Y.R. Traders Private Limited IA (IB) No. 1571-KB-2022 in CP (IB) No. 13-KB-2022

> NCLT judgment dated 2023-01-31. Citation: TCN-2023-NCLT-04841. The case involves an application filed by the Resolution Professional (RP) of Y.R. Traders…

- **Court:** NCLT
- **Order date:** 31 Jan 2023
- **Citation:** TCN-2023-NCLT-04841
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/yr-traders-private-limited-ia-ib-no-1571-kb-2022-in-cp-ib-no-13-kb-2022-6f572aea

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Y.R. Traders Private Limited, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against Y.R. Traders Private Limited based on a petition filed by Chaitanya Alloys Private Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The RP was appointed as the Interim Resolution Professional (IRP) and later as the RP. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor with 90.60% votes. A public announcement was made inviting claims from creditors. The RP received five claims, admitted a portion of them, and constituted the CoC. An Expression of Interest (EOI) was

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## Facts

Chaitanya Alloys Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Y.R. Traders Private Limited (Corporate Debtor), leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). Sushanta Kumar Choudhury was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and it decided with 90.60% votes to liquidate the Corporate Debtor. A public announcement was made to invite claims from creditors. The RP received five claims totaling ₹434.51 Crore, out of which ₹433.77 Crores were admitted. An Expression of Interest (EOI) was invited, and one resolution plan was received from Anand Vihar

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for liquidation of the Corporate Debtor …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) enjoins the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the submission made by the Resolution Professional

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**Interpretation:** Section 33(2) of the IBC provides a clear directive to the Adjudicating

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**Application:** In this case, the CoC had decided to liquidate the Corporate Debtor with 90.60%

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Respondents:** Y.R. Traders…

## Timeline

- **2022-06-07 — Initiation…**: The Adjudicating Authority directed initiation of the Corporate Insolvency Resolution…
- **2022-06-09 — Public Annou…**: Public announcement was made in Financial Express (English) and Aajkal (Bengali)…

## 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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