# In the matter of Mohan Motors Distributors Private Limited Company Application IA-478(KB)2021 in Company Petition CP(IB) No. 1694-KB-2019

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01509. Aircom Travels Private Limited, the Operational Creditor, initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mohan-motors-distributors-private-limited-company-application-ia-478kb2021-in-co-dd8e09d6

## Summary

### Background

Aircom Travels Private Limited, the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency & Bankruptcy Code, 2016 against Mohan Motor Distributors Pvt. Ltd., the Corporate Debtor. The petition was admitted by the Adjudicating Authority on February 24, 2020. Mr. Sandip Kumar Kejriwal was appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Kamal Agarwal as the Resolution Professional (RP) on February 23, 2021, following a resolution by the Committee of Creditors (CoC).

## Facts

Aircom Travels Private Limited, as the Operational Creditor, initiated CIRP against Mohan Motor Distributors Pvt. Ltd., the Corporate Debtor, under Section 9 of the IBC, 2016. The petition was admitted on February 24, 2020. Sandip Kumar Kejriwal was initially appointed as the IRP, later replaced by Kamal Agarwal. Despite efforts, no resolution plan was submitted, and the extended CIRP period expired on April 12, 2021. The CoC, holding 88.35% voting rights, resolved to liquidate the Corporate Debtor. The Corporate Debtor was not a going concern, with no employees and significant accumulated losses. The RP consented to act as the Liquidator. The Adjudicating Authority found no alternative but to order liquidation under Section 33 of the IBC, 2016.

## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional for liquidation of the Corporate …

**Ratio:** Section 33(2) of the Insolvency & Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The Resolution Professional failed to secure a resolution plan for the Corporate Debtor

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when revival

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**Application:** Given the absence of a resolution plan and the CoC's decision, the Adjudicating

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## Parties

- **Judges:** Rajasekh…; Harish Chander…
- **Appellants:** Aircom Travels…
- **Respondents:** Mohan Motor…

## Timeline

- **2020-02-24 — Admission of…**: The Adjudicating Authority admitted the…
- **2020-02-24 — Appointment…**: Mr. Sandip Kumar Kejriwal was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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