# In the matter of Micro Forge (India) Ltd. C.P. (I.B) No. 22-10-NCLT-AHM-2017

> NCLT judgment dated 2017-12-12. Citation: TCN-2017-NCLT-00062. The case involves IA 382/2017 in C.P. (I.B) No. 22/10/NCLT/AHM/2017 before the Ahmedabad Bench…

- **Court:** NCLT
- **Order date:** 12 Dec 2017
- **Citation:** TCN-2017-NCLT-00062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/micro-forge-india-ltd-cp-ib-no-22-10-nclt-ahm-2017-0237a1f7

## Summary

### Background

The case involves IA 382/2017 in C.P. (I.B) No. 22/10/NCLT/AHM/2017 before the Ahmedabad Bench of the National Company Law Tribunal (NCLT). Micro Forge (India) Ltd., the Corporate Debtor, initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC). The Committee of Creditors (COC) in its meeting held on 2017-11-09 resolved that a resolution plan was not feasible and decided to proceed with liquidation, continuing with Mr. Prem Laddha as the liquidator. The 180-day period for arriving at a resolution plan had also expired.

## Facts

Micro Forge (India) Ltd. (Corporate Debtor) initiated CIRP under Section 10 of the IBC. The COC, in its third meeting on 2017-11-09, concluded that a resolution plan was not possible. The 180-day period for arriving at a resolution plan had expired. An application was filed by the resolution professional seeking an order of liquidation under section 33(2) of the Code. The Adjudicating Authority considered these facts and decided to order the liquidation of the Corporate Debtor. The resolution professional, Mr. Prem Laddha, was appointed as the liquidator.

## Issues and analysis

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

**Ratio:** When a resolution plan is not feasible and the stipulated time for resolution has

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**Reasoning:** The COC determined that a resolution plan was not possible. The 180-day period for

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**Interpretation:** Section 33(2) of the IBC allows for liquidation when a resolution plan cannot

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**Application:** Given the COC's resolution and the expiration of the 180-day period, the

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Manorama…
- **Appellants:** CA Premraj…
- **Respondents:** Micro Forge…; Rasiklal Fhusabhai…
- **Advocates:** Anip A. G…; Raju Ko…; +1 more

## Timeline

- **2017-11-09 — COC Meet…**: The COC resolved that a resolution plan was not possible and decided to proceed with…
- **2017-12-12 — Order Da…**: The Adjudicating Authority ordered the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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