# In the matter of Moods Hospitality Private Limited C.A. 783 (PB)-23019 in Company Petition No. (IB) - 189 (PB) -2018

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01195. The case pertains to an application filed by the Resolution Professional under Section 33 of…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01195
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moods-hospitality-private-limited-ca-783-pb-23019-in-company-petition-no-ib-189-aee4fb9a

## Summary

### Background

The case pertains to an application filed by the Resolution Professional under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, Moods Hospitality Private Limited. The financial creditor, Mr. Deepak Seth, had previously filed an application under Section 7 of the Code, which was admitted on 30.08.2018, initiating the Corporate Insolvency Resolution Process (CIRP). Mr. Akhil Goel was appointed as the Interim Resolution Professional.

## Facts

Mr. Deepak Seth, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Moods Hospitality Private Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. This application was admitted on 30.08.2018. Mr. Akhil Goel was appointed as the Interim Resolution Professional. A public announcement was made on 01.09.2018. The Corporate Debtor had no business activities in the past 1.5 years, and all staff/employees had left. The fixed assets were stated to be Rs. 3.65 Lakhs. The Resolution Professional sent notices to the franchises of the Corporate Debtor using the trademark "ICI CHINA". The Committee of Creditors (CoC) was constituted on 26.09.2018, with Mr. Deepak Seth holding 100% voting share.

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## Issues and analysis

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

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code mandates that where the

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**Reasoning:** The court reasoned that the CIRP had failed, no resolution plan was received, and the

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**Interpretation:** Section 33(1)(a) is interpreted to mean that liquidation is the default outcome

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**Application:** In this case, the CIRP failed, no resolution plan was received, and the CoC

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## Parties

- **Judges:** DEEPTI M…; S. K. MOH…
- **Appellants:** Akhil…
- **Respondents:** Moods Hospitality…

## Timeline

- **2018-08-30 — Admission of Section 7…**: Application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Mr.…
- **2018-09-01 — Public Annou…**: Public announcement…

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