# In the matter of Kishori Lal Sudesh Kumar Metals Pvt. Ltd. IA No. 228-JPR-2020 in CP No. (IB)-276-7-JPR-2019

> NCLT judgment dated 2021-10-07. Citation: TCN-2021-NCLT-00799. The case involves an application (IA No. 228/JPR/2020) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 7 Oct 2021
- **Citation:** TCN-2021-NCLT-00799
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kishori-lal-sudesh-kumar-metals-pvt-ltd-ia-no-228-jpr-2020-in-cp-no-ib-276-7-jpr-6eafe1ae

## Summary

### Background

The case involves an application (IA No. 228/JPR/2020) filed by the Resolution Professional (RP) for M/s Kishori Lal Sudesh Kumar Metals Private Limited ('Corporate Debtor') under Section 33 of the Insolvency and Bankruptcy Code, 2016 ('IBC' / 'Code') for initiation of liquidation proceedings against the Corporate Debtor. An earlier application under Section 7 of the Code, filed by the Financial Creditor, Mr. Raghav Aggarwal, had been admitted, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) and the appointment of Mr. Hansraj Mutreja as Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was constituted, and they resolved to appoint Mr. Hansraj Mutreja as the RP. The CoC decided to liquidate the Corporate Debtor

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## Facts

Raghav Aggarwal, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Kishori Lal Sudesh Kumar Metals Pvt. Ltd., the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the application on 2020-01-30. Hansraj Mutreja was appointed as the Interim Resolution Professional (IRP), who then constituted the Committee of Creditors (CoC). The CoC, in its meeting on 2020-03-07, resolved to appoint Hansraj Mutreja as the Resolution Professional (RP). The corporate debtor had not been in operation for almost 19 years and possessed limited assets (Plot No. E-909 RIICO, Industrial Area, Bhiwadi). Due to the lack of a viable resolution plan, the CoC unanimously decided to

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the IBC should be approved given the …

**Ratio:** Section 33 of the IBC allows the Adjudicating Authority to order liquidation if no

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**Reasoning:** The CoC, having determined that the Corporate Debtor had not been in operation for a

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**Interpretation:** Section 33 of the IBC provides a mechanism for liquidation when the CIRP fails

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**Application:** In this case, the CoC's decision to liquidate was based on the Corporate

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Raghav Ag…
- **Respondents:** M/s Kishori Lal…

## Timeline

- **2020-01-30 — Admission of Section 7…**: The Adjudicating Authority admitted the application filed by Mr. Raghav Aggarwal, the…
- **2020-03-07 — First CoC M…**: The 1st meeting of the CoC was held, wherein the CoC resolved to appoint the IRP i.e.,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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