# In the matter of Monica Electronics Limited IA-4873-ND-2020 in Company Petition No. (IB)-2257(ND)-2019

> NCLT judgment dated 2021-03-15. Citation: TCN-2021-NCLT-02703. The application was filed by the Resolution Professional under Section 33(2) of the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 15 Mar 2021
- **Citation:** TCN-2021-NCLT-02703
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/monica-electronics-limited-ia-4873-nd-2020-in-company-petition-no-ib-2257nd-2019-6be6eeed

## Summary

### Background

The application was filed by the Resolution Professional under Section 33(2) of the IBC, 2016, seeking commencement of the liquidation process for the Corporate Debtor, M/s Monica Electronics Limited, and the appointment of Mr. Sanjay Kumar Singh as Liquidator.

## Facts

M/s Adonis Electronics Pvt. Ltd., the operational creditor, initiated the Corporate Insolvency Resolution Process ( CIRP ) against M/s Monica Electronics Limited by filing an application under Section 9 of the IBC, 2016. This application was admitted by the Tribunal on November 4, 2019, and Mr. Sanjay Kumar Singh was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement in Form-A on November 15, 2019, as per Regulation 6(1) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Committee of Creditors (CoC) was constituted with Adonis Electronics Private Limited as the sole operational creditor under Regulation 16 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. In

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## Issues and analysis

### Issue 1: Whether the application for commencement of the liquidation process of the Corporate Debtor under …

**Ratio:** When the Committee of Creditors determines that no viable resolution plan can be achieved

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**Reasoning:** The CoC, after multiple failed attempts to receive a viable resolution plan, concluded

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**Interpretation:** The court interpreted Section 33(2) of the IBC, 2016, to mean that if the CoC

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**Application:** Given the CoC's unanimous decision and the absence of any resolution plan, the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…; +4 more
- **Appellants:** M/s Adonis…; Sanjay Kumar…
- **Respondents:** M/s Monica…; Rajeev S…
- **Advocates:** For the Applicant:…; Nithish Bangera,…

## Timeline

- **November 4, 2019 — CIRP Application…**: The application for Corporate Insolvency Resolution Process (CIRP) against M/s Monica…
- **November 15, 2019 — Public Annou…**: The IRP made a public announcement in Form-A…

## 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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