# In the matter of Metal Closure Private Limited I.A. No. 493-2019 in CP(IB)No. 103-BB-2018

> NCLT judgment dated 2019-09-26. Citation: TCN-2019-NCLT-01235. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Metal…

- **Court:** NCLT
- **Order date:** 26 Sept 2019
- **Citation:** TCN-2019-NCLT-01235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metal-closure-private-limited-ia-no-493-2019-in-cpibno-103-bb-2018-8f11f38f

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Metal Closures Private Limited by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The company defaulted on a total amount of Rs. 282,02,71,568.8/-. The CIRP was initiated, and Mr. Abhishek Nagori was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims against the debtor company. A Committee of Creditors (CoC) was formed, and the IRP's appointment was confirmed as the Resolution Professional (RP). Despite efforts to revive the company, no resolution plan was approved, leading the CoC to resolve for liquidation.

## Facts

State Bank of India initiated CIRP against M/s. Metal Closures Private Limited due to a default of Rs. 282,02,71,568.8/-. Abhishek Nagori was appointed as IRP and later confirmed as RP. The CoC was formed with State Bank of India holding 71.75% and Corporation Bank holding 28.25% of the voting percentage. The IRP made public announcements and constituted the CoC. The Corporate Debtor's management did not cooperate. The Tribunal directed the Directors of the Corporate Debtor to cooperate with the IRP. The NCLAT granted time for settlement. The CIRP period was extended. Despite efforts, no resolution plan was received. The CoC resolved to liquidate the company and appointed Abhishek Nagori as the liquidator. The NCLAT dismissed the appeal filed by the suspended MD of the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Metal Closures Private …

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

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**Reasoning:** The court reasoned that the Resolution Professional and the CoC had made all possible

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**Interpretation:** Section 33 of the IBC provides the legal basis for the Adjudicating Authority

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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:** Rajeswara Rao…; DR ASHOK KUMAR…
- **Appellants:** State Bank of…
- **Respondents:** M/s.Metal…; M/s.Metal Closure…
- **Advocates:** Kavit…; Abhishek…

## Timeline

- **2018-12-14 — Admission o…**: The Adjudicating Authority admitted the case and appointed Mr. Abhishek Nagori as the…
- **2018-12-20 — Public Annou…**: The IRP made a public announcement in Deccan Chronicle (English) and Prajavai (Kannada)…

## 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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