# Canara Bank vs. M/s Versatile Pharma Private Limited

> NCLT judgment dated 2026-07-17. Citation: TCN-2026-NCLT-00652. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Versatile Pharma…

- **Court:** NCLT
- **Order date:** 17 Jul 2026
- **Citation:** TCN-2026-NCLT-00652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-hyderabad/canara-bank-vs-ms-versatile-pharma-private-limited-syguo

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Versatile Pharma Private Limited. Kalvakolanu Murali Krishna Prasad was appointed as Interim Resolution Professional and subsequently confirmed as Resolution Professional. The Committee of Creditors (CoC) was constituted, primarily comprising Union Bank of India and Canara Bank. The Resolution Professional faced persistent non-cooperation from the suspended management, who failed to furnish financial records and asset details despite directions from the Adjudicating Authority. The CIRP was extended multiple times, aggregating to 761 days. A Resolution Plan submitted by M/s Sandor Medicaids Private Limited was deliberated but failed to secure the requisite 66% voting share due to non-compliance

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## Facts

The present Application is filed by the Resolution Professional under Section 33(2) of the IBC, 2016, seeking liquidation of M/s Versatile Pharma Private Limited.

The Corporate Insolvency Resolution Process (CIRP) was initiated by the Tribunal vide order dated 24.08.2023.

Kalvakolanu Murali Krishna Prasad was appointed as Interim Resolution Professional and subsequently confirmed as Resolution Professional in the 1st CoC meeting held on 04.10.2023.

The Committee of Creditors (CoC) was constituted, comprising Union Bank of India (83.65% voting share) and Canara Bank (16.35% voting share).

The Resolution Professional encountered persistent non-cooperation from the suspended management.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Versatile Pharma Private Limited, should be liquidated under …

**Ratio:** The Corporate Debtor must be liquidated if no Resolution Plan is approved within the CIRP

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**Reasoning:** The Resolution Plan failed to secure the requisite 66% voting share from the CoC, and

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

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**Application:** Since no Resolution Plan for M/s Versatile Pharma Private Limited was approved

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Kalvakolanu…
- **Respondents:** M/s Versatile…
- **Other parties:** Union Bank of…; Canara…; +1 more
- **Advocates:** M. Maharshi…

## Timeline

- **2023-08-24 — CIRP Initiation & IRP…**: Corporate Insolvency Resolution Process (CIRP) was initiated by the Tribunal, and…
- **2023-10-04 — RP Confir…**: Kalvakolanu Murali Krishna Prasad was confirmed as Resolution Professional in the 1st…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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