# In the matter of Earth Mover Consultancy Private Limited IA No. 235-KB-2020 in CP (IB) No. 546-KB-2019

> NCLT judgment dated 2021-05-28. Citation: TCN-2021-NCLT-02088. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 28 May 2021
- **Citation:** TCN-2021-NCLT-02088
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/earth-mover-consultancy-private-limited-ia-no-235-kb-2020-in-cp-ib-no-546-kb-201-1f3e2537

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Earth Mover Consultancy Private Limited. The Committee of Creditors (CoC) had passed a resolution with 100% voting share for liquidation before inviting Expression of Interest from prospective resolution applicants. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by Tata Hitachi Construction Machinery Company Private Limited, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority had appointed an Interim Resolution Professional (IRP), who was later confirmed as the Resolution Professional.

## Facts

Tata Hitachi Construction Machinery Company Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Earth Mover Consultancy Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the petition and appointed an Interim Resolution Professional (IRP). The IRP made a public announcement as per Section 15 of the Code. The IRP was later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted, and meetings were held. In the 3rd CoC meeting held on 31/01/2020, a resolution was passed with 100% voting share for liquidation of the Corporate Debtor before inviting Expression of Interest from prospective resolution applicants. The RP then filed an application

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of

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**Reasoning:** The CoC had passed a resolution with 100% voting share for liquidation of the Corporate

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

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**Application:** The CoC's decision to liquidate the Corporate Debtor, coupled with the nearing

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Earth Mover…

## Timeline

- **2019-10-21 — Initiation…**: Adjudicating Authority directed initiation of CIRP against the Corporate Debtor based on…
- **2019-10-30 — Public Annou…**: Public announcement in Form ‘A' was made in…

## 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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