In re SPP Insolvency Professionals LLP (NCLT Ahmedabad)
NCLT Ahmedabad held that Corporate Debtor [Shree Ram Cottex Industries Pvt. Ltd.] is admitted into liquidation in terms of provisions of section 33(1)(b) of the Insolvency and Bankruptcy Code, 2016 in view of rejection of resolution plan u/s. 31(2) for non-compliance with statutory requirements.
Facts- The instant application is filed on 25.02.2025 by the Applicant/Resolution Professional (M/s. SPP Insolvency Professional LLP, RP of M/s. Shree Ram Cottex Industries Private Limited under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the NCLT Rules, 2016 praying to allow this application and to pass an order confirming the CoC decision taken in the 12th CoC meeting held on 17.01.2025 in approval of the Resolution Plan submitted by Mr. Gunvantrai Vrajlal Bhadani.
Conclusion- Held that following the rejection of the resolution plan under Section 31(2) for non-compliance with statutory requirements, and given the mandatory requirement under Section 33(1)(b) to initiate liquidation upon failure to approve a resolution plan within the CIRP period, the Tribunal orders the liquidation of the Corporate Debtor to maximize creditor value and conclude the insolvency process. Thus, the Corporate Debtor Shree Ram Cottex Industries Private Limited is admitted into liquidation in terms of the provisions of 33(1)(b) of the Insolvency and Bankruptcy Code, 2016, to be conducted in accordance with Chapter III of the Code and the IBBI (Liquidation Process) Regulations, 2016 which shall be effective from the date of this order.
