# In the matter of Dev Cotex Pvt Ltd. CP (IB) No. 63-10-NCLT-AHM-2017

> NCLT judgment dated 2018-02-05. Citation: TCN-2018-NCLT-01875. The case involves an application filed by the resolution professional seeking an order of…

- **Court:** NCLT
- **Order date:** 5 Feb 2018
- **Citation:** TCN-2018-NCLT-01875
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dev-cotex-pvt-ltd-cp-ib-no-63-10-nclt-ahm-2017-21638d2a

## Summary

### Background

The case involves an application filed by the resolution professional seeking an order of liquidation for Dev Cotex Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC) after a petition was filed by Dev Cotex Pvt Ltd. The Committee of Creditors (COC) in its third meeting held on 22.12.2017 resolved that a resolution plan was not feasible and decided to proceed with liquidation, continuing the resolution professional, Premraj Ramratan Laddha, as liquidator. The 180-day period for arriving at a resolution plan has also expired.

## Facts

Dev Cotex Pvt Ltd. initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC). The Committee of Creditors (COC) determined that a resolution plan was not viable during its third meeting on December 22, 2017. Consequently, the COC resolved to proceed with liquidation. The 180-day period for arriving at a resolution plan had expired. The resolution professional, Premraj Ramratan Laddha, was to continue as the liquidator. An application was filed by the resolution professional seeking an order of liquidation under section 33(2) of the Code. The Adjudicating Authority considered these facts and decided to order the liquidation of Dev Cotex Pvt Ltd.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Dev Cotex …

**Ratio:** When a resolution plan cannot be formulated within the stipulated timeframe and the COC

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**Reasoning:** The Adjudicating Authority considered the fact that the 180-day period for arriving at a

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**Interpretation:** This interpretation aligns with the provisions of the Insolvency and Bankruptcy

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**Application:** In this case, the COC's decision, coupled with the expiration of the resolution

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** Premraj Ramratan…
- **Respondents:** Dev Cotex P…

## Timeline

- **2017-12-22 — COC Meet…**: The Committee of Creditors (COC) in its third meeting resolved that it is not possible to…
- **2018-02-05 — Order Da…**: The Adjudicating Authority ordered the liquidation of Dev Cotex Pvt Ltd. and appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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