# In the matter of Ashok Magnetics Limited MA-163-2018 In CP-551-IB-2017

> NCLT judgment dated 2018-11-09. Citation: TCN-2018-NCLT-00366. The case involves a Miscellaneous Application (MA/163/2018) filed in CP/551/IB/2017 by the…

- **Court:** NCLT
- **Order date:** 9 Nov 2018
- **Citation:** TCN-2018-NCLT-00366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ashok-magnetics-limited-ma-163-2018-in-cp-551-ib-2017-1be69f60

## Summary

### Background

The case involves a Miscellaneous Application (MA/163/2018) filed in CP/551/IB/2017 by the Resolution Professional, Mr. V. Nagarajan, under Sections 33(1)(a) and 34(1) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the Corporate Debtor, M/s. Ashok Magnetics Limited. The application was filed after the Committee of Creditors (CoCs) did not approve any resolution plan within the stipulated 270-day period. The initial Corporate Insolvency Resolution Process (CIRP) was initiated by the Central Bank of India and the State Bank of India under Section 7 of the I&B Code, 2016. The CIRP period was extended beyond 180 days but ultimately expired without a resolution plan being approved.

## Facts

The Central Bank of India and the State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Ashok Magnetics Limited under Section 7 of the Insolvency and Bankruptcy Code (I&B Code), 2016. The CIRP was admitted on 2017-09-04, and a moratorium was declared. Mr. V. Nagarajan was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional. The CIRP period was extended beyond 180 days, expiring on 2018-06-01. The Resolution Professional invited Expression of Interest (Eol) from prospective Resolution Applicants, with a deadline of 2018-04-05. Three Resolution Applicants expressed interest, but the Resolution Plans submitted by the two qualified applicants were rejected by the Committee of

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Ashok Magnetics Limited, should be liquidated due to the failure …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016, provides that where the Adjudicating

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Sub-section

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**Interpretation:** Section 33(1)(a) mandates liquidation when the CIRP fails to produce an

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**Application:** In this case, the CIRP failed to produce an approved resolution plan,

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Respondents:** M/s. Ashok…
- **Advocates:** M.L. Ga…; J.Maniv…

## Timeline

- **2017-09-04 — CIRP Admi…**: Corporate Insolvency Resolution Process…
- **2018-03-02 — CIRP Exte…**: The Authority extended the time…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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