# In the matter of Ada Cellworks Wireless Engineering Pvt. Ltd. M.A. No.  3805-2019 in C.P. No. 2346-2018

> NCLT judgment dated 2020-02-18. Citation: TCN-2020-NCLT-01904. The case pertains to an application filed by the Resolution Professional seeking liquidation of…

- **Court:** NCLT
- **Order date:** 18 Feb 2020
- **Citation:** TCN-2020-NCLT-01904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ada-cellworks-wireless-engineering-pvt-ltd-ma-no-3805-2019-in-cp-no-2346-2018-2c92167b

## Summary

### Background

The case pertains to an application filed by the Resolution Professional seeking liquidation of the Corporate Debtor, Ada Cellworks Wireless Engineering Pvt. Ltd., due to the absence of a resolution plan. The Adjudicating Authority had previously initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor based on a petition filed by the Operational Creditor. The Resolution Professional was appointed, and the Committee of Creditors (CoC) later resolved to appoint him as the Resolution Professional. Despite efforts to invite resolution plans, none were received, leading to the application for liquidation.

## Facts

The Operational Creditor filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Ada Cellworks Wireless Engineering Pvt. Ltd. The present Applicant was appointed as Interim Resolution Professional (IRP) and later as Resolution Professional (RP). Public announcement was made on 2019-07-31. The Committee of Creditors (CoC) decided to appoint valuers and invited Expression of Interest (Eol) for resolution plans, setting deadlines for submission. Despite these efforts, no resolution plan was received. Consequently, the CoC, in its 4th meeting held on 2019-11-20, with 100% voting rights, passed a resolution for liquidating the company. The RP then filed an

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Ada Cellworks Wireless Engineering …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The court reasoned that since no resolution plan was received despite the efforts made

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**Interpretation:** Section 33(1) is interpreted to mean that if the CIRP fails to produce a viable

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**Application:** In this case, the absence of a resolution plan, coupled with the CoC's

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Manojkuma…
- **Respondents:** Ada Cellworks…

## Timeline

- **2019-07-11 — Order for CIRP…**: The Adjudicating Authority directed the initiation of the Corporate Insolvency Resolution…
- **2019-07-31 — Public Annou…**: The Resolution Professional made a public announcement in 'Financial Express' and 'The…

## 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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