# In the matter of Dee Ess Buhin Pvt. Ltd. (IB)-1158(ND)-2018

> NCLT judgment dated 2019-09-03. Citation: TCN-2019-NCLT-01617. The applicant, M/s. Modern Credit Pvt. Ltd., filed a case against the respondent, M/s. Dee…

- **Court:** NCLT
- **Order date:** 3 Sept 2019
- **Citation:** TCN-2019-NCLT-01617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dee-ess-buhin-pvt-ltd-ib-1158nd-2018-9f7c5474

## Summary

### Background

The applicant, M/s. Modern Credit Pvt. Ltd., filed a case against the respondent, M/s. Dee Ess-Buhin Pvt. Ltd., due to the rejection of their claim by the Interim Resolution Professional (IRP). After reviewing the documents, the claim was admitted. The Corporate Insolvency Resolution (CIR) period of 180 days had expired, and no resolution plan was received. The Committee of Creditors (CoC) approved the resolution for liquidating the assets of the Corporate Debtor (CD). The resolution was approved unanimously by all members present in the CoC, constituting 85.8% of the voting share.

## Facts

M/s. Modern Credit Pvt. Ltd. filed a claim which was initially rejected by the Interim Resolution Professional (IRP). The applicant challenged this rejection. Upon review of the provided documents, the claim was admitted. The Corporate Insolvency Resolution Process (CIRP) had been ongoing for 180 days, but no resolution plan was received. The Committee of Creditors (CoC) unanimously approved a resolution for the liquidation of the Corporate Debtor's assets, with 85.8% of the voting share in favor. The Resolution Professional (RP) expressed unwillingness to continue as liquidator. The CoC's decision to liquidate the assets is significant because it indicates the failure of the CIRP to find a viable resolution plan for the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the applicant's claim should be …

**Ratio:** A creditor's claim should be admitted if it is supported by sufficient documentation and

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**Reasoning:** The court reviewed the documents provided by the applicant and found sufficient grounds

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**Interpretation:** This reinforces the principle that claims should be thoroughly evaluated based

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**Application:** The court applied this principle by examining the applicant's documents and

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## Parties

- **Judges:** Ina Mal…; SUMITAPURKA…
- **Appellants:** M/s Modern Credit…
- **Respondents:** M/s. Dee Ess-Buhin…

## Timeline

- **2019-09-03 — Order Del…**: Order delivered by the National…
- **2019-09-16 — Further Consi…**: Case re-notified for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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