# In the matter of Maruthi Food Processing and Agri Products Export (India) Private Limited MA-1436-2019 in CP-1384-IB-2018

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02436. The case involves an MA filed under section 33(1) of the Insolvency & Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maruthi-food-processing-and-agri-products-export-india-private-limited-ma-1436-2-a56d7200

## Summary

### Background

The case involves an MA filed under section 33(1) of the Insolvency & Bankruptcy Code, 2016 by the Resolution Professional (RP) of the Corporate Debtor, Maruthi Food Processing and Agri Products Export (India) Private Limited, seeking direction for liquidation of the company. The application was based on a resolution passed by the 4th Committee of Creditors (CoC) meeting held on 06.12.2019, recommending the liquidation of the Corporate Debtor. The RP also stated that in the same CoC meeting, the sole Financial Creditor of the CoC passed a resolution for waiving the appointment of a valuer, for obtaining valuation of the assets of the Corporate Debtor, for making an invitation for Expression of Interest and for passing an order of liquidation of the Corporate Debtor.

## Facts

The Resolution Professional (RP) of Maruthi Food Processing and Agri Products Export (India) Private Limited filed an MA under section 33(1) of the Insolvency & Bankruptcy Code, 2016, seeking direction for the liquidation of the Corporate Debtor. The 4th CoC meeting held on 06.12.2019 recommended liquidation. The sole Financial Creditor of the CoC passed a resolution for waiving the appointment of a valuer. The RP was recommended to continue as Liquidator for a consolidated fee of ₹1,80,000 plus out-of-pocket expenses. The court was asked to consider the application for liquidation and the waiver of valuation.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Maruthi Food Processing and Agri Products Export (India) Private …

**Ratio:** Section 33(1) of the Insolvency & Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court considered the recommendation of the CoC to liquidate the Corporate Debtor. The

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**Interpretation:** The court interpreted Section 33(1) of the IBC to mean that the CoC's decision

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**Application:** The court applied the ratio to the facts of the case, noting that the CoC had

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Respondents:** Maruthi Food…

## Timeline

- **2019-12-06 — 4th CoC M…**: The 4th Committee of Creditors (CoC) meeting was held, recommending the liquidation of…
- **2020-01-02 — Open Court…**: The matter was heard and…

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