NCLT directs Liquidation of JM Feed Pvt Ltd on satisfying conditions u/s 33 of IBC, Appoints Liquidator [Read Order]

In a recent ruling, the Chandigarh bench of the National Company Law Tribunal (NCLT) in view of the satisfaction of the conditions provided under section 33 of the Code, the Corporate Debtor, i.e., JM Feed Mills Private Limited, is directed to be liquidated in the manner as laid down in Chapter III of the Insolvency and Bankruptcy Code, 2016 (“Code”). The bench appointed Mr. Ashok Kumar Gupta as a liquidator of the corporate debtor i.e. JM Feed Mills Private Limited.

Somnath Gupta, Resolution Professional (“RP”/ “Applicant”) for JM Feed Mills Pvt. Ltd. (“Corporate Debtor”) under sub-section (2) of Section 33 of the Insolvency and Bankruptcy Code, 2016 (“Code”). It is prayed by the Applicant that an order for liquidation of the Corporate Debtor in terms of sub-section (2) of Section 33 of the Code be passed and Mr. Ashok Kumar Gupta, Insolvency Professional having registration number IBBI/IPA-003/IP-N00010/2016-17/10072 be appointed as the liquidator.

An insolvency Petition was filed under Section 7 of the Code by the Financial Creditor for initiating the Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor. The Petition was duly admitted vide order dated 10.01.2023, and the Applicant was appointed as Interim Resolution Professional (“IRP”).

The Applicant collated all the claims submitted by the creditors and constituted a Committee of Creditors (hereinafter referred as to CoC), comprising of sole financial creditors of the Corporate Debtor I.e. Bank of Baroda. The IRP in the first meeting of the CoC on 06.02.2023, placed the agenda for appointment of IRP as the Resolution Professional. The same was approved by the CoC with 100% voting shares. The same was confirmed by the Adjudicating Authority vide Order dated 27.03.2023.

Form G was published in newspapers, namely Financial Times (English) NCR Edition, Jansatta (Hindi), NCR Edition, Times of India (English), Rozana Spokesman (Punjabi) in Punjab Edition and Dainik Bhaskar (Hindi) in Jind Edition on 15.02.2023 specifying the last date to submit the Expression of Interest (‘EOI’) as 11.03.2023.

In terms of the decision of the CoC and Regulation 36A (1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 ( “CIRP Regulations”), the Applicant had published Invitation for Expression of Interest in Form G dated 25.03.2023 in two newspapers namely, Times of India (English) and Dainik Bhaskar (Hindi). The last date for receipt of expression of interest was stipulated as 11.04.2023. Form G was also published on the website of Insolvency and Bankruptcy Board of India.

Subsequently, the Applicant had received Six expressions of Interest from the Prospective Resolution Applicants (

PRAs), namely, Harish Taneja, Triveni Hatcheries Private Limited, Lakshya Health Food Private Limited, SSR Townships Private Limited, RM Argo Indus Private Limited and Amanthari Industries Private Limited.

The Applicant apprised the sole member of CoC that the Applicant has received four Resolution Plans in the matter of the Corporate Debtor from four PRAS, namely, Harish Taneja, RM Agro Indus Pvt. Ltd. Lakshya Health Food Pvt. Ltd. And Triveni Hatcheries Pvt. Ltd. The Applicant observed some discrepancies in the Resolution Plans submitted in the matter of the Corporate Debtor and the same was conveyed to the PRAs for correction.

Thereafter, the Applicant with permission of sole member of CoC invited the PRAs one by one for presenting their Resolution Plan. Upon discussions and deliberations, CoC informed PRAs that their plan value is very low and needs substantial improvement. The member of CoC also requested the PRAs to submit best financial proposal in the next meeting. The Applicant further placed the agenda for extension of CIRP, beyond 180 days expiring on 08.07.2023, by 90 days. The sole member of CoC approved the agenda for extension of CIRP. The extension of CIRP was allowed by the Tribunal.

The Applicant placed the resolutions for voting on the Resolution Plans received from PRAs. The Applicant also placed the agenda to consider filing of Application seeking Liquidation of the Corporate Debtor under Section 33(2) of the Code in the event the CoC members decide to vote against the Resolution Plan. The Applicant placed the Resolution in accordance with Regulation 39B, 39BA, 39C and 39D of the CIRP Regulations before CIRP for voting.

The Resolutions were placed on e-voting which started on 29.09.2023 at 11:00 AM and concluded on 28.10.2023 at 06:10 PM. The CoC requested the Applicant to also place the resolutions for seeking extension of 30 days beyond the CIRP period for voting on the Resolution Plans. The IRP in terms of Regulation 35 of the CIRP Regulations appointed IBBI Registered Valuers for carrying out valuation of assets of the Corporate Debtor.

Considering the above facts and circumstances of the case and taking into account the guidelines of IBBI, dated 18.07.2023 that IP other than the IRP/RP may be appointed as liquidator in all the cases where a liquidation order is to be passed.

A two member bench of Khetrabasi Biswal, Member (Judicial) and Kaushalendra Kumar Singh, Member (Technical) appointed Mr. Ashok Kumar Gupta as a liquidator of the corporate debtor i.e. JM Feed Mills Private Limited. The liquidator so appointed shall complete the liquidation process as per the provisions of the Code read with the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016.

In view of the satisfaction of the conditions provided under section 33 of the Code, the Corporate Debtor, i.e., JM Feed Mills Private Limited, is directed to be liquidated in the manner as laid down in Chapter III of the Code. The present Resolution Professional is directed to hand over the relevant documents and control of the Corporate Debtor to the newly appointed liquidator namely, forthwith.

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