# In the matter of Clover Forging and Machining Pvt. Ltd. C.A.1562-C-II-ND-2019 in Company Petition No. (IB)-1120(ND)-2018

> NCLT judgment dated 2020-01-02. Citation: TCN-2020-NCLT-02566. The case involves an application filed by the Resolution Professional (RP) of M/s. Clover…

- **Court:** NCLT
- **Order date:** 2 Jan 2020
- **Citation:** TCN-2020-NCLT-02566
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/clover-forging-and-machining-pvt-ltd-ca1562-c-ii-nd-2019-in-company-petition-no-0904d6c6

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of M/s. Clover Forging and Machining Private Limited under Sections 33(1)(a) and 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order to initiate the liquidation process for the Corporate Debtor. The Financial Creditor, Corporation Bank, had previously filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted by the Tribunal on 04.12.2018. Mr. Rohit Mehra was appointed as the Interim Resolution Professional (IRP).

## Facts

The Financial Creditor, Corporation Bank, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Clover Forging and Machining Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 04.12.2018. Rohit Mehra was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP invited expressions of interest (EOIs) for resolution plans, but only four EOIs were received. Deccan Value Investors LP (DVI) expressed interest and submitted an offer, but the Committee of Creditors (CoC) rejected it because the offer of Rs.39 Crore was lower than the liquidation value of Rs.47 Crore and did not comply with the Code. The CoC decided on 13.11.2019, followed by

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed given the absence …

**Ratio:** Section 33 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 within the stipulated

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**Interpretation:** Section 33 provides a clear pathway for liquidation when resolution efforts

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**Application:** The court applied Section 33 to the facts of the case, noting the absence of a

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** Rohit M…
- **Respondents:** M/s Clover…

## Timeline

- **2018-12-04 — Admission of CIRP…**: The Tribunal admitted the application filed by Corporation Bank under Section 7 of the…
- **2018-12-04 — Appointment…**: Mr. Rohit Mehra was appointed as the…

## 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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