In the matter of ARJUN CHEMICALS PRIVATE LIMITED

IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH (COURT– I) CHENNAI ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON 12.06.2025 THROUGH VIDEO CONFERENCE PRESENT: HON'BLE SHRI SANJIV JAIN, MEMBER (JUDICIAL) HON'BLE SHRI VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) IN THE MATTER OF : Sri Gurudev Enterprises and 4 Others Vs Arjun Chemicals Pvt Ltd MAIN PETITION NUMBER : CP(IB)/13(CHE)/2023 (IA/MA) APPLICATION NUMBERS IA(IBC)(LIQ)/14/2025 ORDER IA(IBC)(LIQ)/14/2025 Present: None for Liquidator Vide separate Order pronounced in Open Court, the Application is allowed. The liquidation is ordered. Mr. S.Kannan is appointed as the Liquidator.

-sd- -sd- [VENKATARAMAN SUBRAMANIAM] [SANJIV JAIN] MEMBER (TECHNICAL) MEMBER (JUDICIAL) MS Date: 12.06.2025

DIVISION BENCH – I, CHENNAI [ IA(IBC)(LIQ)/14/CHE/2025 in CP(IB)/13/CHE/2023 (Filed under Section 33(1)(a),33(2) & 34(1) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016) In the matter of Arjun Chemicals Private Limited

Kannan Sambasivam, Resolution Professional of Arjun Chemicals Private Limited Skyline Castle, First Floor, 27 Abdul Razack Street, Saidapet, Chennai, Tamil Nadu – 600015 … Applicant [ Order Pronounced on 12th June, 2025 CORAM: SANJIV JAIN, MEMBER (JUDICIAL) VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) For Applicant : Mr. V. Manivannan, Mr. V. Arvind Rajaopal, Advocates

(Heard Through Hybrid Mode)

1. This application has been filed by Mr. Kannan Sambasivam,

Resolution Professional of the Corporate Debtor Arjun Chemicals

Private Limited, under Section 33(1)(a),33(2) & 34(1) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016 seeking the reliefs as follows:

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited a) The Applicant requests that this Tribunal condones the delay of 14 days in filing the instant application. b) To pass an order for the liquidation of the corporate debtor. c) To pass such other orders as it deems fit in the above circumstances of the case and thus render justice.

2. It is stated that the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor was initiated on 28.06.2024 and Mr. S. Kannan was appointed as the Interim Resolution Professional (IRP).

3. This Tribunal ordered moratorium under Section 14, directed the IRP to make public announcement and complete the assignment as required under the law. The public announcement about initiation of the CIRP and calling for the claims from the Creditors was published by the IRP on 03.07.2024 in the newspapers ‘Makkal Kural’ (Tamil) & ‘Trinity Mirror’ (English). The last date for submission of claims was fixed as 12.07.2024.

4. It is stated that the IRP received one claim from the Secured

Financial Creditor, twelve claims from the Unsecured Financial

Creditors, fifty claims from the employees, one claim from the Operational Creditor i.e. the Government dues, twenty-four claims from the Operational Creditors, in response to the Public IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

Announcement. The total value of claims received was Rs.

122,87,23,645/-. The collated value was Rs. 118,90,02,345/-. It is stated that on the basis of the claims received, CoC was constituted.

5. It is stated that in the first COC meeting held on 31.07.2024, the Committee of Creditors (CoC) decided to appoint the Interim

Resolution Professional as the Resolution Professional. The erstwhile

Director Mr. Chandrasekar Padmanabhan also participated in the meeting.

6. It is stated that the Applicant conducted the 2nd CoC Meeting on 03.09.2024, in which certain agendas were placed for approval. By 100% voting, the CoC resolved to appoint advocates, valuers, to vacate the Chennai office, remove books of accounts and to ratify the expenses incurred.

7. It is stated that the Applicant conducted the 3rd CoC Meeting on 19.09.2024 where a decision on the appointment of valuer for Jammu factory and surrendering of the Velachery office was taken. It is stated that the 4th CoC meeting was held on 19.10.2024.

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

8. It is stated that the Applicant conducted the 5th CoC Meeting on 06.12.2024, where the agenda to approve and ratify Form G and the expenses was discussed and the resolutions were passed. It is stated that the 6th CoC Meeting was held on 06.01.2025, where resolutions regarding approval of the issuance of Form G, Evaluation Matrix, the CIRP extension, authorization for the Resolution Professional to open a bank account, and approval of expenses were passed.

9. It is stated that the Applicant published Form G on 10.01.2025 in the newspapers and the CoC was reconstituted.

10. It is stated that the 7th CoC meeting was conducted on 10.03.2025.

During the meeting, one prospective Resolution Applicant (RA)

indicated that it would review the documents and, if not interested, would withdraw from the process. Another PRA requested 30 days time to submit the Resolution Plan. It is stated that the Financial

Creditor, State Bank of India, opposed further delay and agreed to a maximum extension of 10 days.

11. It is stated that the Applicant convened the 8th CoC meeting on 21.03.2025. The two Prospective Resolution Applicants (PRAs)

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited withdrew from the process, and their EMD amounts of Rs. 10 lakhs each were refunded. The CoC also approved the resolution seeking extension for submission of Form G up to 31.03.2025, filing an application for a 60-day CIRP extension, filing IA concerning PUFE transactions and filing IA for non-compliance under Section 19(2).

12. It is stated that the remaining PRAs also withdrew from the process via telephone and requested for refund of the EMD amount of Rs. 10,00,000/-. The RP sent an email dated 04.04.2025 seeking written confirmation for withdrawal.

13. It is stated that the Applicant via email dated 07.04.2025, informed the CoC that the last PRA has also withdrawn. He proposed to proceed with the liquidation of the Corporate Debtor, subject to the CoC approval. It is stated that the Secured Financial Creditor, holding

86.35% voting share, suggested for the liquidation of the Corporate

Debtor, while the Unsecured Financial Creditor suggested for conducting a forensic audit.

14. It is stated that the Tribunal vide an order dated 08.04.2025 extended the CIRP period till 30.04.2025 and directed the RP to IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited conduct CoC meeting to obtain approval for proceeding for the liquidation of the Corporate Debtor.

15. It is stated that the 9th CoC meeting was conducted on 22.04.2025, wherein following decisions were taken:

Authorizing the Resolution Professional to file an application for liquidation of Arjun Chemicals Private Limited, appointing the Resolution Professional as the Liquidator and on the expenses incurred by the Resolution Professional.

16. Relevant extract of the 9th CoC meeting is herein below:

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

17. It is stated that in the 9th COC meeting held on 22.04.2025 it was unanimously resolved to liquidate the Corporate Debtor. The Applicant has annexed Form-H as Annexure-20. It is stated that the following cases are pending for adjudication:

18. During the proceedings on 30.05.2025, the Applicant in IA(IBC)/1953(CHE)/2024 i.e. Mr. P. Chandrasekhar stated that there are receivables and he can assist the RP/Liquidator in the process of recovery to which RP gave no objection.

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

19. We have heard Ld. Counsel for the Applicant/RP and perused the record.

20. In the instant case, the CIRP against the Corporate Debtor was initiated on 28.06.2024. The IRP invited the claims and constituted the CoC. He collected the relevant information and prepared information memorandum. He issued Form G inviting expression of interest from the Prospective Resolution Applicants (PRA). The PRAs submitted their expression of interest but later withdrew from the process and on their request the earnest money was refunded to them. The RP placed the matter before the CoC where a decision was taken by the CoC in the 9th meeting held on 22.04.2025 to go for the liquidation of the Corporate Debtor. Request has also been made to condone the delay of 14 days in filing the application.

21. Considering the submission and the minutes including Form H submitted by the Applicant where CoC passed a resolution to go for the liquidation of the Corporate Debtor, we condone the delay and allow the application filed by the RP initiating liquidation process against the Corporate Debtor Arjun Chemicals Private Limited.

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

22. The CoC in the meeting held on 22.04.2025 has also proposed to appoint the RP as the Liquidator which resolution was passed with 86.35% voting share.

23. The proposed Liquidator, Mr. S. Kannan has filed his written consent to act as the Liquidator of the Corporate Debtor, enclosed as Annexure-21. On verification from the IBBI Website, it is seen that his

Authorization for Assignment (AFA) is valid up to 31.12.2025.

24. We hereby appoint, Mr. S. Kannan with Reg. No. IBBI/IPA-

001/IP-P00755/2017-2018/11287 as the Liquidator of the Corporate

Debtor, to carry out the liquidation process.

25. In the meeting, the expenses towards the liquidation process were also discussed. The CoC estimated the expenses as Rs.41,08,200/-.

It was noticed that the liquid assets are not available to meet the liquidation cost. A decision was taken by the Stakeholders / CoC members to contribute the cost proportionate to their claims. A decision was also taken to first explore the sale of the Corporate Debtor as a going concern under section 32(e) and 32(f) of IBBI Liquidation

Regulations and if the above is not possible then to identify and IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited include the assets / liabilities and sell them as a going concern. In the CoC meeting, the fee of the Liquidator was also discussed i.e. Rs.

15,00,000/- (i.e. 3.75% on the sale value of the asset as per Liquidation

Process Regulation 4(2)).

26. It is ordered as under:

a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant Rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended upto date enjoined upon her.

b) The Liquidator shall issue the public announcement that the Corporate Debtor is in liquidation. In relation to officers/ employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge.

c) The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferential transactions/ undervalued transactions and such other like transactions including fraudulent preferences and file suitable application before this Adjudicating Authority.

d) The Liquidator is directed to first explore the sale of the Corporate Debtor as a going concern under Regulation 32(e)

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited and 32(f) of IBBI Liquidation Regulations and if the same is not possible, then identify and group the assets and liabilities ought to be sold as a going concern and thereafter explore the other possibilities as provided under the Liquidation Process Regulations. e) The Liquidator is directed to investigate the financial affairs of the Corporate Debtor in terms of the provisions of Section – 35(1) of IBC, 2016 read with relevant rules and regulations and also file its response for disposal of any pending Company Applications during the process of liquidation.

f) The Liquidator shall submit a Preliminary report to this Tribunal within 75 (seventy-five) days from the liquidation commencement date as per regulation 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. Further such other or further report as are required to be filed under the relevant Regulations, in addition, shall also be duly filed by him with this Adjudicating Authority.

g) The fee of the Liquidator is fixed as Rs. 1,50,000/- + GST per month to be paid by the CoC / SCC members proportionate to their claims.

27. The Registry is directed to communicate this order to the Registrar of Companies, concerned and to the Insolvency and Bankruptcy Board of India.

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited

28. The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and that a fresh Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence.

29. Copy of this order be sent to the financial creditors, Corporate

Debtor and the Liquidator for taking necessary steps and for extending the necessary co-operation in relation to the Liquidation process of the Corporate Debtor.

30. With the above directions, IA(IBC)(LIQ)/14/CHE/2025 filed for the liquidation of the Corporate Debtor stands allowed and the delay of 14 days is hereby condoned.

-Sd- -Sd- VENKATARAMAN SUBRAMANIAM SANJIV JAIN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

AU

IA(IBC)/(LIQ) /14/CHE/2025 in CP(IB)/13/CHE/2023 In the matter of Arjun Chemicals Private Limited