# In the matter of M. K. Cables & Conductors Private Limited IA-587-IB-2020 in IBA-257-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03224. The application IA/587/IB/2020 was filed in IBA/257/2019 under Section 33(2) of the Insolvency…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03224
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/m-k-cables-conductors-private-limited-ia-587-ib-2020-in-iba-257-2019-a9510657

## Summary

### Background

The application IA/587/IB/2020 was filed in IBA/257/2019 under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, M/s. MK Cables and Conductors Private Limited. The CIRP was initiated on 2019-07-30. An interim resolution professional, Mr. R. Sankaran, was appointed, but later replaced by Mr. Ramakrishnan Sadasivan. The appointment of Mr. Ramakrishnan Sadasivan was confirmed by the Tribunal on 2019-10-09. Prior to the applicant's appointment as RP, claims were invited, resulting in Rs. 5.37 crore from one financial creditor and Rs. 1.67 crore from three operational creditors, totaling Rs. 7.04 crore. The applicant inspected the factory premises and took possession of the assets. The sole financial creditor, Punjab

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## Facts

M/s. MK Cables and Conductors Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 2019-07-30. Mr. R. Sankaran was initially appointed as the Interim Resolution Professional (IRP) but was later replaced by Mr. Ramakrishnan Sadasivan, whose appointment was confirmed by the Tribunal on 2019-10-09. Prior to the RP's appointment, claims amounting to Rs. 5.37 crore were received from one financial creditor and Rs. 1.67 crore from three operational creditors, totaling Rs. 7.04 crore. The applicant inspected the factory premises and took possession of the assets. Punjab National Bank, the sole financial creditor, initiated proceedings under the SARFAESI Act, leading to an auction of land and building. The Corporate Debtor challenged this

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. MK Cables and Conductors …

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

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**Reasoning:** The Tribunal considered the resolution passed by the CoC members in their 9th meeting

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

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**Application:** Given the CoC's resolution and the existing impediments, the Tribunal approved

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Respondents:** M/s. MK Cables…

## Timeline

- **2019-07-30 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated for M/s. MK Cables and…
- **2019-08-30 — CoC Meet…**: Committee of Creditors (CoC) unanimously resolved to replace Mr. R. Sankaran (IRP) with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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