# In the matter of Esskay Motors Pvt. Ltd. MA 677 in C.P. 1076-I&BP-2017

> NCLT judgment dated 2018-01-08. Citation: TCN-2018-NCLT-01960. The case involves an application filed by the Resolution Professional of Esskay Motors Pvt.…

- **Court:** NCLT
- **Order date:** 8 Jan 2018
- **Citation:** TCN-2018-NCLT-01960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/esskay-motors-pvt-ltd-ma-677-in-cp-1076-ibp-2017-03dc7b45

## Summary

### Background

The case involves an application filed by the Resolution Professional of Esskay Motors Pvt. Ltd. under section 33(2) of the Insolvency & Bankruptcy Code, seeking liquidation of the company. The corporate insolvency resolution process (CIRP) was initiated based on a petition filed by HDFC Bank Ltd. under section 7 of the Code. Several Committee of Creditors (CoC) meetings were held to discuss the revival of the company, but the proposals were not accepted, leading to the decision to liquidate the company.

## Facts

Esskay Motors Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) following a petition by HDFC Bank Ltd. under Section 7 of the IBC. Rajeev Mannadiar was appointed as the Resolution Professional. Several meetings of the Committee of Creditors (CoC) were held to explore revival options. The Ex-CMD of Esskay Motors, Mr. C.K. Prasad, presented proposals, including one involving Craftsvilla and another for debt assignment to Invent ARC Pvt. Ltd., but these were rejected by the CoC. The CoC also rejected the Ex-CMD's offer to pay the liquidation value. Valuation reports were submitted, indicating liquidation values of ₹9,22,000 and ₹9,15,000. The CoC ultimately decided to liquidate the company due to the unacceptability of the revival proposals. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Esskay Motors Pvt. Ltd., under …

**Ratio:** Section 33(2) of the Insolvency & Bankruptcy Code allows for the initiation of

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**Reasoning:** The CoC unanimously resolved to liquidate the Corporate Debtor after failing to find an

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when revival

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**Application:** The CoC's decision to liquidate Esskay Motors Pvt. Ltd. was based on the

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Rajeev Man…
- **Respondents:** Esskay Motors Pvt…
- **Advocates:** Rajeev Man…

## Timeline

- **2017-06-29 — Order by Adjudicating…**: The Adjudicating Authority passed an order initiating the Insolvency Resolution process…
- **2017-08-31 — First CoC M…**: The first meeting of the…

## 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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