# In the matter of Mohan Motor Dealers Private Limited IA (IB) No. 611-KB-2022 in CP (IB) No. 1685-KB-2019

> NCLT judgment dated 14 Sept 2022. Citation: TCN-2022-NCLT-01074. The case originated from a petition filed by Paragon Finance Limited, a financial creditor,…

- **Court:** NCLT
- **Order date:** 14 Sept 2022
- **Citation:** TCN-2022-NCLT-01074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mohan-motor-dealers-private-limited-ia-ib-no-611-kb-2022-in-cp-ib-no-1685-kb-201-53dbe559

## Summary

### Background

The case originated from a petition filed by Paragon Finance Limited, a financial creditor, under section 7 of the Insolvency and Bankruptcy Code, 2016, against Mohan Motor Dealers Private Limited, the corporate debtor. This led to the initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor on August 3, 2021. Mr. Arun Kumar Khandelia was initially appointed as the Interim Resolution Professional (IRP) and subsequently confirmed as the Resolution Professional (RP) on September 15, 2021. The present application was filed by the Resolution Professional, with the approval of the Committee of Creditors (CoC), seeking the liquidation of the corporate debtor due to various challenges encountered during the CIRP.

## Facts

The Resolution Professional (RP) filed an application seeking the liquidation of Mohan Motor Dealers Private Limited, the corporate debtor. This application was approved by the Committee of Creditors (CoC) with 100% votes, indicating a unanimous decision to proceed with liquidation. The Adjudicating Authority had initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor on August 3, 2021, following a petition by Paragon Finance Limited, a financial creditor, under section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Arun Kumar Khandelia was appointed as the Interim Resolution Professional (IRP) and subsequently as the Resolution Professional (RP) on September 15, 2021.

## Issues and analysis

### Issue 1: Whether the corporate debtor, Mohan Motor Dealers Private Limited, should be ordered for…

**Ratio:** An order for liquidation of a corporate debtor must be passed by the Adjudicating…

**Reasoning:** The Adjudicating Authority reasoned that the Committee of Creditors (CoC) had unanimously…

**Interpretation:** The court interpreted **section 33(2)** of the Code to mean that once the CoC,…

**Application:** Given that the CoC had resolved with 100% votes to liquidate the corporate…

## Parties

- **Judges:** Rohit K…; Balraj…
- **Advocates:** Rishav Ba…; Yashraj Aga…

## Timeline

- **August 3, 2021 — CIRP Init…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **August 23, 2021 — Application for…**: Applicant filed an application under Section 19(2) & (3) of the Code seeking directions…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/mohan-motor-dealers-private-limited-ia-ib-no-611-kb-2022-in-cp-ib-no-1685-kb-201-53dbe559