# In the matter of Jaipur Trade Expocentre Pvt. Ltd. vs. Metro Jet Airways Training Pvt. Ltd. & Ors

> NCLAT judgment dated 2023-12-21. Citation: TCN-2023-NCLAT-00008. This case involves an appeal against the Adjudicating Authority's order dated 31.08.2023,…

- **Court:** NCLAT
- **Order date:** 21 Dec 2023
- **Citation:** TCN-2023-NCLAT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaipur-trade-expocentre-pvt-ltd-vs-metro-jet-airways-training-pvt-ltd-ors-a580d06e

## Summary

### Background

This case involves an appeal against the Adjudicating Authority's order dated 31.08.2023, which allowed the application for liquidation and directed the liquidation of Jaipur Trade Expocentre Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor due to non-cooperation from the promoter/directors, lack of business activity, and the dilapidated condition of the company. The Resolution Professional (RP) filed an application for liquidation, which was initially approved by the Adjudicating Authority. The appellant challenged this order, arguing that the decision to liquidate was premature and that the scheme of the

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## Facts

Jaipur Trade Expocentre Pvt. Ltd. is the Corporate Debtor. An application under Section 9 of the IBC was admitted by the Adjudicating Authority on 10.08.2022. The publication was made on 12.08.2022 by the Interim Resolution Professional (IRP). Only one claim was filed, belonging to the Operational Creditor who initiated the application. The CoC was constituted by the IRP. The first CoC meeting was held on 03.09.2022, and the third meeting was on 27.09.2022, where a resolution was passed to liquidate the Corporate Debtor. The Corporate Debtor had no employees, no business, no registered office, and had not filed annual accounts at the MCA since 31.03.2011. There were no banking transactions since 2017. The Adjudicating Authority allowed the application for liquidation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 empowers the Committee of

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**Reasoning:** The Tribunal reasoned that the CoC had given valid reasons for deciding to liquidate the

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**Interpretation:** Section 33(2) provides the CoC with broad powers to decide on liquidation,

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**Application:** In this case, the CoC's decision to liquidate was justified because the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Respondents:** Jaipur Trade…; Metro Jet Airways…

## Timeline

- **2022-08-10 — Admission of Ap…**: Adjudicating Authority admitted…
- **2022-08-12 — Publication…**: Publication was made by…

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