# In the matter of Maa Tara Ferrotech Pvt. Ltd. IA No. 1167-KB-2020 in CP (IB) No.836-KB-2018

> NCLT judgment dated 2021-01-18. Citation: TCN-2021-NCLT-03280. Vaishno Engineer System Associates, an operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 18 Jan 2021
- **Citation:** TCN-2021-NCLT-03280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maa-tara-ferrotech-pvt-ltd-ia-no-1167-kb-2020-in-cp-ib-no836-kb-2018-8e142a73

## Summary

### Background

Vaishno Engineer System Associates, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Maa Tara Ferrotech Pvt. Ltd. The Committee of Creditors (CoC) was formed, and the IRP was later replaced by Mr. Anish Agarwal. The CoC ultimately decided to seek liquidation of the Corporate Debtor due to bleak chances of revival, especially considering that a sister concern, Maa Tara Ispat Industries Pvt. Ltd., was already in liquidation.

## Facts

Vaishno Engineer System Associates initiated CIRP against Maa Tara Ferrotech Pvt. Ltd. under Section 9 of the IBC. The CIRP commenced on 2020-03-13. A Committee of Creditors (CoC) was constituted on 2020-06-18, with admitted claims of Rs. 14.5 crore. The CoC decided to liquidate the Corporate Debtor due to the absence of a resolution plan and the liquidation of a sister concern, Maa Tara Ispat Industries Pvt. Ltd., sharing common boundaries. The CoC rejected the proposal for a forensic audit. Mr. Anish Agarwal was appointed as the Resolution Professional and later as the Liquidator. The CoC voted with 100% majority to liquidate the Corporate Debtor. The application for liquidation was filed under Section 33(2) of the IBC.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the liquidation of the Corporate Debtor, Maa Tara …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, mandates the Adjudicating

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**Reasoning:** The CoC resolved with 100% voting share to liquidate the Corporate Debtor. The

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**Interpretation:** Section 33(2) provides a clear directive for the Adjudicating Authority to

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**Application:** In this case, the CoC, with 100% voting share, resolved to liquidate Maa Tara

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Vaishno Engineer…
- **Respondents:** Maa Tara Ferrotech…

## Timeline

- **2020-03-13 — CIRP Init…**: Adjudicating Authority directed initiation of CIRP against Maa Tara Ferrotech Pvt. Ltd.…
- **2020-03-19 — Public Annou…**: Public announcement of the…

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