# In the matter of Moving Picture Company (India) Ltd. CA-671-C-III-2019 in CP-IB-1368-ND-2018

> NCLT judgment dated 2019-10-30. Citation: TCN-2019-NCLT-00779. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 Oct 2019
- **Citation:** TCN-2019-NCLT-00779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moving-picture-company-india-ltd-ca-671-c-iii-2019-in-cp-ib-1368-nd-2018-2bf91b3f

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of Virgo Services Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 7 of the I&B Code, 2016, by the Corporate Debtor, which was admitted by the Authority on 2019-06-11. Mr. Yogesh Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP took over the management of the CD, issued newspaper publications inviting claims from creditors, and constituted a Committee of Creditors (CoC).

## Facts

Virgo Services Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Yogesh Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP prepared an information memorandum and appointed valuers. The Committee of Creditors (CoC) approved estimated CIRP costs of Rs 8,65,400/-, but the book value of the Corporate Debtor's (CD) assets was much lower. The RP determined that the CD's business could not be restarted due to a lack of assets. The CoC resolved to liquidate the CD and authorized the RP to file an application for liquidation. No resolution plan was received within the 180-day CIRP period.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Virgo Services Private Limited, should be liquidated due to the …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the liquidation

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**Reasoning:** The Adjudicating Authority considered that no resolution plan was received within the

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if a resolution plan is not

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**Application:** In this case, since no resolution plan was received and the CoC determined that

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** Yogesh Kuma…
- **Respondents:** Virgo Services…

## Timeline

- **2018-01-01 — IB/1368/ND/201…**: IB/1368/ND/2018 filed under Section 7 of the…
- **2019-06-11 — CIRP Init…**: The Authority admitted the application…

## 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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