# In the matter of Jejani Pulp and Paper Private Limited MA 1614-2018 & 1037-2019 in CP (IB) 1833-MB-2017

> NCLT judgment dated 2019-11-06. Citation: TCN-2019-NCLT-00697. The case involves an application (MA 1614/2018) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 6 Nov 2019
- **Citation:** TCN-2019-NCLT-00697
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jejani-pulp-and-paper-private-limited-ma-1614-2018-1037-2019-in-cp-ib-1833-mb-20-62aad8ad

## Summary

### Background

The case involves an application (MA 1614/2018) filed by the Resolution Professional (RP) of the Corporate Debtor, Jejani Pulp and Paper Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (I&B Code), seeking an order for liquidation. The Corporate Insolvency Resolution Process (CIRP) was initiated after the application under section 7 of I&B Code filed by the Financial Creditor, JM Financial Asset Reconstruction Company Limited, was admitted on 2018-06-22. The RP was appointed as Interim Resolution Professional to conduct the CIRP, and a Committee of Creditors (COC) was constituted.

## Facts

JM Financial Asset Reconstruction Company Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against Jejani Pulp and Paper Private Limited, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). The application was admitted on 2018-06-22. Mr. Prasad Kamlakar Dharap was appointed as the Resolution Professional (RP). The RP appointed two valuers, and their reports were submitted on 2018-08-09 and 2018-10-08. The RP admitted claims amounting to ₹16,99,74,205/- out of the total claim of ₹17,22,14,403/- submitted by the Financial Creditors. As per the valuation report of A.C. Belekar, the liquidation value was ₹12,00,00,000/- and the fair market value was ₹15,00,00,000/-. As per the valuation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the application for liquidation of the Corporate …

**Ratio:** As per sub-section (2) of section 33 of the I&B Code, the Adjudicating Authority has

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**Reasoning:** The COC decided to liquidate the Corporate Debtor as the offer received from the only

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**Interpretation:** Section 33(2) of the I&B Code mandates the Adjudicating Authority to pass a

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**Application:** In this case, the RP intimated the Adjudicating Authority of the COC's decision

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## Parties

- **Judges:** V. P. S…; RAJESH S…
- **Respondents:** Jejani Pulp and…

## Timeline

- **2018-06-22 — Admission of Section 7…**: Application under section 7 of I&B Code filed by Financial Creditor admitted by the…
- **2018-07-20 — Appointment of…**: Applicant appointed as…

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