# In the matter of Mahabir Techno Limited CA No.120-2019 In CP (IB) No.70-Chd-Hry-2018

> NCLT judgment dated 2019-02-22. Citation: TCN-2019-NCLT-04716. The application was filed by the Resolution Professional under Sections 33(1)(b) (i), (ii),…

- **Court:** NCLT
- **Order date:** 22 Feb 2019
- **Citation:** TCN-2019-NCLT-04716
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahabir-techno-limited-ca-no120-2019-in-cp-ib-no70-chd-hry-2018-bed48193

## Summary

### Background

The application was filed by the Resolution Professional under Sections 33(1)(b) (i), (ii), (iii) and 33 (2) of the Insolvency and Bankruptcy Code, 2016, seeking an order of liquidation for the corporate debtor, Mahabir Techno Limited. A petition under Section 9 of the Code was initiated by Ashapura Perfoclay Limited against Mahabir Techno Limited and was admitted on 2018-10-30, which led to the declaration of a moratorium and the appointment of Mr. Vinod Kumar Mahajan as the Interim Resolution Professional. The Resolution Professional invited claims, and the Committee of Creditors (CoC) was formed. During a site visit, it was discovered that the machinery and stocks had been removed by the corporate debtor before Union Bank of India took possession under the SARFAESI

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## Facts

Ashapura Perfoclay Limited initiated insolvency proceedings against Mahabir Techno Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2018-10-30, leading to a moratorium and the appointment of Vinod Kumar Mahajan as the Interim Resolution Professional. During the resolution process, it was found that Mahabir Techno Limited had removed machinery and stocks before Union Bank of India could take possession under the SARFAESI Act. The Committee of Creditors (CoC) was formed, but the company's business was closed, and its balance sheet was unavailable after 2017-03-31. The CoC resolved to liquidate the corporate debtor with 100% voting share, finding no viable resolution plan. The Resolution Professional then filed an

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor under …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

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**Reasoning:** The Committee of Creditors resolved to liquidate the Corporate Debtor with 100% voting

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**Interpretation:** Section 33 provides a mechanism for liquidation when the resolution process

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor with 100%

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Ashapura Perfoclay…
- **Respondents:** Mahabir Techno…
- **Advocates:** Mr.Saurabh…

## Timeline

- **2018-10-30 — Admission of…**: The petition under Section 9 of the Code filed by Ashapura Perfoclay Limited against…
- **2018-11-29 — First Meeting…**: Mr. Vinod Kumar Mahajan was confirmed as the Resolution Professional and took over the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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