# In the matter of AKP Plastics Private Limited IA-929-IB-20120 in IBA-1081-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03212. The Corporate Insolvency Resolution Process (CIRP) for AKP Plastics Private Limited was…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akp-plastics-private-limited-ia-929-ib-20120-in-iba-1081-2019-3896e81a

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) for AKP Plastics Private Limited was initiated on November 21, 2019. The applicant was appointed as the Interim Resolution Professional (IRP). A public announcement was made to invite claims from the creditors of the Corporate Debtor, with a publication date of December 4, 2019. A committee of creditors (CoC) was formed on December 27, 2019. In the first CoC meeting held on January 3, 2020, the sole Financial Creditor, Tamilnadu Mercantile Bank Limited, holding 100% voting rights, confirmed the applicant's continuation as the Resolution Professional. The Resolution Professional (RP) found that the Corporate Debtor was engaged in trading activities but possessed limited assets, primarily motor cars. Consequently, no

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of AKP Plastics Private Limited was initiated on 21.11.2019. The applicant was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 04.12.2019, inviting claims from creditors. The Committee of Creditors (CoC) was constituted on 27.12.2019. The sole financial creditor, Tamilnadu Mercantile Bank Limited, holding 100% voting rights, confirmed the applicant as the Resolution Professional (RP) in the first CoC meeting on 03.01.2020. The RP found that the Corporate Debtor was engaged in trading activities but had limited assets, mainly motor cars. The CoC, in its meeting on 12.02.2020, observed that the Corporate Debtor was not carrying on any business or generating income. Consequently,

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. AKP Plastics Private Limited, …

**Ratio:** The legal principle applied is that if the Committee of Creditors (CoC) resolves to

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**Reasoning:** The Adjudicating Authority considered the submissions made by the Applicant and the

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**Interpretation:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to order the

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**Application:** In this case, the CoC resolved to liquidate the Corporate Debtor, M/s. AKP

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Respondents:** AKP Plastics…

## Timeline

- **2019-11-21 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-12-04 — Public Annou…**: Public announcement made to…

## 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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