# In the matter of Kridhan Infrastructure Private Ltd. (Now known Krish Steel and Trading Pvt. Ltd.) Vs. Venkatesan Sankaranarayan Civil Appeal No.3299/2020

> SC judgment dated 2020-10-09. Citation: TCN-2020-SC-00022. The case involves an appeal against an order of the NCLAT that upheld the liquidation of the…

- **Court:** SC
- **Order date:** 9 Oct 2020
- **Citation:** TCN-2020-SC-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/kridhan-infrastructure-private-ltd-now-known-krish-steel-and-trading-pvt-ltd-vs-f56ac13c

## Summary

### Background

The case involves an appeal against an order of the NCLAT that upheld the liquidation of the Corporate Debtor, Kridhan Infrastructure Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 7 August 2017. A resolution plan submitted by the appellant was approved by the Committee of Creditors (CoC) on 30 April 2018 and by the NCLT on 15 May 2019. The NCLT was later approached because the Resolution Plan had not been implemented by the appellant, leading to an application under Section 33 of the Insolvency and Bankruptcy Code 2016 seeking liquidation, which was allowed on 16 January 2020.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Kridhan Infrastructure Pvt. Ltd. on 7 August 2017. The appellant's resolution plan was approved by the CoC on 30 April 2018 and by the NCLT on 15 May 2019. The NCLT was later approached because the resolution plan had not been implemented, leading to a liquidation order on 16 January 2020. The appellant appealed to the NCLAT, which initially granted time for compliance. A meeting on 25 February 2020 resulted in a revised timeline. The appellant deposited Rs 15 crores in an escrow account. The NCLAT dismissed the appeal on 8 September 2020, upholding the liquidation order. The appellant appealed to the Supreme Court, arguing that liquidation should be a last resort. The appellant agreed to forfeit

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## Issues and analysis

### Issue 1: Whether the order of liquidation passed by the NCLAT should be stayed, considering the appellant's …

**Ratio:** Liquidation of the Corporate Debtor should be a matter of last resort, and the IBC

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**Reasoning:** The court considered the submissions of the appellant's counsel, who argued that

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**Interpretation:** The court interpreted the IBC's objective as not merely the recovery of monies

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**Application:** The court applied the principle that liquidation should be a last resort to the

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## Parties

- **Judges:** Dr Dhananjaya Y…; Indu Mal…; +1 more
- **Respondents:** Kridhan Infrastruc…; Venkatesan…
- **Other parties:** Over Tu…

## Timeline

- **2017-08-07 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-04-30 — Resolution Plan…**: Resolution Plan submitted by the appellant was approved by the Committee of Creditors…

## 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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