# In the matter of Zenil Traders Pvt. Ltd.

> NCLT judgment dated 2024-04-05. Citation: TCN-2024-NCLT-01812. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Apr 2024
- **Citation:** TCN-2024-NCLT-01812
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/zenil-traders-pvt-ltd-48736f00

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of liquidation for Zenil Traders Pvt. Ltd, the Corporate Debtor. The Corporate Debtor was already undergoing Corporate Insolvency Resolution Process (CIRP) since 06.10.2022. The Resolution Professional (RP), Mr. Pranav Damania, filed the application after the Committee of Creditors (CoC) unanimously decided to liquidate the Corporate Debtor due to the lack of viable resolution plans and insufficient funds to cover CIRP costs. Public announcements were made to invite claims from creditors, and a CoC was formed consisting of one operational creditor, Supreways Enterprises Pvt Ltd. Despite efforts to find resolution applicants, no viable proposals

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## Facts

Zenil Traders Pvt. Ltd. was undergoing Corporate Insolvency Resolution Process (CIRP) since 06.10.2022. Mr. Pranav Damania was appointed as the Interim Resolution Professional (IRP). Public announcement was made to invite claims from creditors. An Interlocutory Application (IA) bearing No.3800 of 2022 was filed for seeking to take on record of the Hon'ble Tribunal the report certifying Constitution of CoC. The CoC was formed consisting only of one Operational creditor, Supreways Enterprises Pvt Ltd. Supreways Enterprises Pvt Ltd claimed and had admitted amount of Rs. 10,09,60,000/-. The Hon'ble Tribunal vide order dated 06.10.2022 ordered the Applicant (Supreways Enterprises Pvt Ltd) to deposit as amount of 5,00,000/- with IRP. The CoC approved the CIRP cost. However,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of a viable resolution plan …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court reasoned that no Expression of Interest (EOI) and Resolution Plan has been

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**Interpretation:** The interpretation of Section 33 in this context emphasizes the importance of a

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**Application:** In this case, the absence of any viable resolution plan, coupled with the CoC's

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Shri.Pranav…
- **Respondents:** Zenil Traders…; Superways…
- **Advocates:** Bhavesh N…

## Timeline

- **2022-10-06 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2022-10-11 — Public Annou…**: IRP issued Public Announcement in Form A in accordance with Section 15 of the Code and…

## 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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