# In the matter of Adya Oils & Chemicals Ltd. M.A 3923-2019 &
M.A 571-2020 In C.P. (IB)-2392(MB)-2019

> NCLT judgment dated 2020-03-04. Citation: TCN-2020-NCLT-01639. The case involves an application (M.A 3923/2019) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01639
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adya-oils-chemicals-ltd-ma-3923-2019-ma-571-2020-in-cp-ib-2392mb-2019-0fea0795

## Summary

### Background

The case involves an application (M.A 3923/2019) filed by the Resolution Professional (RP) under section 19(2) of the Insolvency and Bankruptcy Code (IBC) seeking cooperation from the ex-directors of the Corporate Debtor, Adya Oils & Chemicals Ltd. Additionally, M.A 571/2020 was filed by the RP seeking liquidation of the Corporate Debtor based on the Committee of Creditors (COC) approval. The COC had earlier considered early liquidation, as the Corporate Debtor had been inoperative for over a decade with no employees. Form G was issued, but no Expression of Interest (EOI) was received. The COC then unanimously voted for liquidation. The RP also referred to Regulation 39 C and Regulation 32 of the IBBI (Corporate Insolvency Resolution Process) Regulations, 2016,

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## Facts

Adya Oils & Chemicals Ltd. is the Corporate Debtor. The company has been inoperative for more than a decade and has no employees. The Resolution Professional (RP) filed an application seeking cooperation from the ex-directors of the Corporate Debtor. The RP also sought liquidation of the Corporate Debtor based on the approval of the Committee of Creditors (COC). The COC held meetings on 31.01.2020 and 18.11.2019 to discuss the matter. Form G was issued to invite Expression of Interest (EOI), but no EOI was received. The COC unanimously voted for liquidation. The COC also approved the appointment of Ms. Rekha Shah as the liquidator. The COC members unanimously dissented for introducing the scheme of compromise and arrangement and exploring the sale as per Regulation

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## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, Adya Oils & Chemicals Ltd, should be allowed …

**Ratio:** The COC's decision, especially when supported by a 100% vote, carries significant weight

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**Reasoning:** The court reasoned that the COC, with 100% voting, had approved the liquidation of the

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**Interpretation:** The interpretation of the IBC emphasizes the importance of the COC's role in

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**Application:** In this case, the COC's 100% approval for liquidation, coupled with the fact

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## Parties

- **Judges:** Chandra Bha…; SUCHITRA KANUPARTH…; +1 more
- **Appellants:** Stressed Assets…
- **Respondents:** Adya Oils &…; Adya Oils and…

## Timeline

- **2019-11-18 — Second COC…**: RP briefed to COC members that the…
- **2019-11-30 — Form G Publ…**: Form G was published with the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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