# In the matter of Aeon Paper Mills Private Limited MA-396-2019 in CP-577-IB-CB-2018

> NCLT judgment dated 2019-05-21. Citation: TCN-2019-NCLT-03226. The case involves an application (MA/396/2019) filed in CP/577/IB/CB/2018 under Section 33(2)…

- **Court:** NCLT
- **Order date:** 21 May 2019
- **Citation:** TCN-2019-NCLT-03226
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aeon-paper-mills-private-limited-ma-396-2019-in-cp-577-ib-cb-2018-87d4b123

## Summary

### Background

The case involves an application (MA/396/2019) filed in CP/577/IB/CB/2018 under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, M/s. Aeon Paper Mills Private Limited. Initially, the Corporate Debtor had filed CP/577/IB/CB/2018 under Section 10 of the IBC, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) was appointed, followed by the constitution of a Committee of Creditors (CoC). Mr. Muthuiah Thevar Rajapandian was appointed as the Resolution Professional, replacing the IRP.

## Facts

M/s. Aeon Paper Mills Private Limited (Corporate Debtor) initiated Corporate Insolvency Resolution Process (CIRP) by filing CP/577/IB/CB/2018 under Section 10 of the Insolvency and Bankruptcy Code, 2016. The application was admitted, and an Interim Resolution Professional (IRP) was appointed. Subsequently, Mr. Muthuiah Thevar Rajapandian was appointed as the Resolution Professional (RP). The RP took charge, appointed valuers, and conducted meetings of the Committee of Creditors (CoC). The Corporate Debtor submitted a One Time Settlement (OTS) proposal, but no resolution plan was received despite inviting Expression of Interest (EoI). The CoC, in its meeting held on 02.04.2019, resolved with 100% voting rights for the liquidation of the Corporate Debtor. The Resolution

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Aeon Paper Mills Private Limited, should be liquidated due to …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, mandates liquidation if no

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**Reasoning:** The Authority noted that no resolution plan was received despite the Resolution

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**Interpretation:** Section 33(1) of the I&B Code is interpreted to mean that if the CIRP fails

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**Application:** Since no resolution plan was received for M/s. Aeon Paper Mills Private Limited

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Respondents:** M/s. Aeon Paper…

## Timeline

- **2018-07-10 — Initial…**: Authority admitted the Application, initiated the CIR Process against the Corporate…
- **2018-08-14 — CoC Meet…**: 1st Meeting of the CoC held, the CoC has approved the name of the Applicant viz., Mr.…

## 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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