Corporate debtor was to be liquidated as CoC with 98.91% voting rejected resolution plan and resolved to liquidate

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  • Last Updated on 15 July, 2021

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Liquidation under Insolvency and Bankruptcy Code

Case details: Yash Productions v. Saga Automotive India (P.) Ltd. - [2021] 127 taxmann.com 890 (NCLT-Jaipur)

Judiciary and Counsel Details

    • Ajay Kumar Vatsavayi | Judicial Member & Raghu Nayyar | Technical Member
    • Prashant Agrawal, Adv. for the Applicant.

Facts of the Case

The Petition filed under section 9 to initiate the Corporate Insolvency Resolution process against the corporate debtor was admitted and Resolution Professional (RP) was appointed.

In course of CIRP, only one potential resolution applicant submitted a proposal which was rejected by the Committee of Creditors (CoC)

However, upon expiry of the CIRP period, CoC with 98.91 per cent voting share resolved to liquidate corporate debtor and RP filed an application under section 33(2) for passing an order of liquidation in the matter of corporate debtor.

NCLT Held

In view of satisfaction of conditions provided under section 33(2), a corporate debtor was directed to be liquidated in the manner as laid down in Chapter III of Code.

Cases Referred to

    • Praveen Kumar Nanda Kumar v. VSL Securities (P.). Ltd. [CA No. 1/2020 in CA No. 308/2000] (para 7)

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