# In the matter of Academy for Counseling and Education Pvt. Ltd. MA 496-2019 in CP(IB)259(MB)-2018

> NCLT judgment dated 2019-08-13. Citation: TCN-2019-NCLT-01976. MA 496/2019 was filed under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 13 Aug 2019
- **Citation:** TCN-2019-NCLT-01976
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/academy-for-counseling-and-education-pvt-ltd-ma-496-2019-in-cpib259mb-2018-2b3ebba5

## Summary

### Background

MA 496/2019 was filed under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, Academy For Counselling & Education Pvt Ltd. The applicant, Resolution Professional Mr. Rakesh Rathi, filed the application stating that a petition filed under Section 9 was admitted by order of the bench dated 31.10.2018. The CoC, in its first meeting, appointed the applicant as a Resolution Professional of the Corporate Debtor. The 2nd meeting of CoC was held on 23.1.2019, wherein the CoC disapproved publishing of Expression of Interest under Regulation 66A of CIRP Regulations, 2016, as there are no substantial assets in the company. The CoC with 100% vote shares approved resolution for Liquidation of the Corporate Debtor. It was

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## Facts

MA 496/2019 was filed under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Academy For Counselling & Education Pvt Ltd. Mr. Rakesh Rathi, the Resolution Professional, filed the application. A petition under Section 9 was admitted on 31.10.2018. The CoC appointed Mr. Rakesh Rathi as the Resolution Professional. The CoC disapproved publishing of Expression of Interest due to no substantial assets. The CoC approved liquidation with 100% vote share and appointed Mr. Rakesh Rathi as Liquidator. The court allowed the application and ordered liquidation under Section 33 of IBC. The moratorium declared on 31.10.2018 ceased to exist.

## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33 of the IBC, 2016 allows for the liquidation of a corporate debtor when the

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**Reasoning:** The CoC, with 100% vote share, approved the resolution for liquidation of the Corporate

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CoC, with the

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**Application:** In this case, the CoC approved the liquidation with 100% vote share. Therefore,

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## Parties

- **Judges:** V. P. S…; RAJESH S…
- **Appellants:** Rakesh…
- **Respondents:** Academy For…; Nisarg Healthcare…

## Timeline

- **2018-10-31 — Petition Ad…**: Petition filed under section 9 was…
- **2019-01-23 — 2nd CoC M…**: The 2nd meeting of CoC was held, wherein the CoC disapproved publishing of Expression of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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