# In the matter of Dream Systems Private Limited MA-465-2019 in CP-715-IB-CB-2017

> NCLT judgment dated 2019-07-30. Citation: TCN-2019-NCLT-02221. The application was filed under sections 33(2) and 60(5) of the IBC, 2016, seeking liquidation…

- **Court:** NCLT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLT-02221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dream-systems-private-limited-ma-465-2019-in-cp-715-ib-cb-2017-6de086bf

## Summary

### Background

The application was filed under sections 33(2) and 60(5) of the IBC, 2016, seeking liquidation of the Corporate Debtor, M/s. Dream Systems Private Limited. The Financial Creditor stated that no resolution was passed during the CIRP and the 180-day period, and no extension was sought by the RP. One year had passed since the admission order on 02.04.2018. The RP clarified that no asset is lying in the company, so there was no need to appoint registered valuers to ascertain the liquidation value.

## Facts

M/s. RKTC Logistics Private Limited, the Financial Creditor, filed an application seeking the liquidation of M/s. Dream Systems Private Limited, the Corporate Debtor. The Corporate Debtor was undergoing Corporate Insolvency Resolution Process (CIRP), but no resolution plan was approved within the stipulated time. The Resolution Professional (RP), Mr. C. Ramasubramaniam, stated that the Corporate Debtor had no assets. The RP also expressed unwillingness to continue as the RP or liquidator. The applicant obtained the consent of Mr. K. Suresh to act as the liquidator. The Adjudicating Authority, after considering the facts, found the case fit for liquidation and ordered the liquidation of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated given the absence of a resolution plan and the …

**Ratio:** Section 33(2) and 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, provide the

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**Reasoning:** The court reasoned that since no resolution plan was approved during the CIRP period and

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**Interpretation:** The IBC allows for liquidation when the CIRP process fails to achieve a

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**Application:** In this case, the absence of a resolution plan, the RP's statement that the

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s. RKTC…
- **Respondents:** M/s. Dream…; C.RAMASUBRAMANIAM…

## Timeline

- **2017-01-01 — CP/715/IB/C…**: Filing of CP/715/IB/CB/2…
- **2018-04-02 — Admission…**: Admission orde…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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