# In the matter of Rakesh Gupta & Anr. Vs.Mr Nitin Narang,Liquidator of M/s Gupta Marriage Halls Pvt Ltd & Ors.,Company Appeal  (AT)(INS) NO.822 of 2021

> NCLAT judgment dated 2022-09-09. Citation: TCN-2022-NCLAT-00226. This is a Company Appeal filed under Section 61 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLAT
- **Order date:** 9 Sept 2022
- **Citation:** TCN-2022-NCLAT-00226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rakesh-gupta-anr-vsmr-nitin-narangliquidator-of-ms-gupta-marriage-halls-pvt-ltd-10c4746f

## Summary

### Background

This is a Company Appeal filed under Section 61 of the Insolvency & Bankruptcy Code, 2016 (IBC) by two Appellants, who claim to be ex-Directors of M/s Gupta Marriage Halls Pvt Ltd (Corporate Debtor). The appeal challenges an order dated 04.01.2021 passed by the Adjudicating Authority, National Company Law Tribunal, Division Bench, Court III, New Delhi. The Adjudicating Authority allowed a petition filed under Section 33(2) of the IBC in IA No.5289(ND)/2020 in CP (IB) No.979 (ND) of 2019, initiating liquidation proceedings against the Corporate Debtor.

## Facts

Punjab National Bank filed an application under Section 7 of the IBC against M/s Gupta Marriage Halls Pvt Ltd (Corporate Debtor) due to outstanding debt. The Adjudicating Authority initiated CIRP on 03.09.2019. The Corporate Debtor's account was declared NPA on 29.07.2016. The Corporate Debtor had availed term loans and overdraft facilities which were restructured on 31.03.2017. Despite notices, the Corporate Debtor did not enter an appearance. No resolution plan was approved during the CIRP. The Resolution Professional (RP) filed a petition under Section 33(2) of the IBC for liquidation. The Committee of Creditors (CoC) voted with 100% voting share for liquidation. The appellants, ex-directors of the Corporate Debtor, allegedly did not cooperate with the RP by

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in ordering the liquidation of the Corporate …

**Ratio:** Section 33(2) of the IBC mandates that if the Resolution Professional intimates the

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**Reasoning:** The court reasoned that the word 'shall' in Section 33(2) implies that the Adjudicating

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**Interpretation:** Section 33(2) of the IBC provides a mandatory direction to the Adjudicating

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**Application:** In this case, the CoC voted with 100% voting share to liquidate the Corporate

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## Parties

- **Judges:** Rakesh…
- **Appellants:** Rakesh…
- **Respondents:** M/s. Gupta…; Mr Nitin…

## Timeline

- **2016-07-29 — Account Decla…**: The account of the Corporate Debtor was…
- **2019-09-03 — CIRP Init…**: The Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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