# In the matter of Moving Picture Company (India) Ltd. IA-2905-2020 in IB-1368(ND)-2018

> NCLT judgment dated 2020-09-02. Citation: TCN-2020-NCLT-00737. The case pertains to IA/2905/2020 filed in IB-1368(ND)/2018 under Section 54 of the Insolvency…

- **Court:** NCLT
- **Order date:** 2 Sept 2020
- **Citation:** TCN-2020-NCLT-00737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/moving-picture-company-india-ltd-ia-2905-2020-in-ib-1368nd-2018-0bae82d1

## Summary

### Background

The case pertains to IA/2905/2020 filed in IB-1368(ND)/2018 under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 45 of IBBI (Liquidation Process) Regulations, 2016. The initial application, IB-1368(ND)/2018, was filed by M/s. Virgo Services LLP (Previously Virgo Services Private Limited) under Section 7 of the I&B Code, 2016, as a Financial Creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated on 11.06.2019, a moratorium was declared, and Mr. Yogesh Kumar Gupta was appointed as the IRP. The Committee of Creditors (CoC) was formed on 11.07.2019, and the applicant was confirmed as Resolution Professional. The CoC decided to liquidate the corporate debtor on 09.09.2019 due to the brand's inability to fetch value and

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## Facts

M/s. Moving Picture Company (India) Ltd. underwent Corporate Insolvency Resolution Process (CIRP) initiated by M/s. Virgo Services LLP (Previously Virgo Services Private Limited) under Section 7 of the I&B Code, 2016. The CIRP commenced on 11.06.2019, leading to a moratorium and the appointment of Mr. Yogesh Kumar Gupta as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed on 11.07.2019, and the IRP was confirmed as the Resolution Professional. During the process, the applicant published Form A in the newspaper on 14.06.2019. The CoC decided on 09.09.2019 to liquidate the Corporate Debtor, citing the brand's inability to attract value and the infeasibility of selling the company as a going concern. The application for liquidation

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the I&B …

**Ratio:** Section 54 of the I&B Code, 2016, provides the legal basis for the dissolution of a

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**Reasoning:** The NCLT considered the application, the details provided, and the record placed on file.

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**Interpretation:** Section 54 of the I&B Code allows the Adjudicating Authority to dissolve

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**Application:** Given that the liquidation process was deemed complete, the NCLT applied

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Narender Kumar…
- **Appellants:** Yogesh Kuma…
- **Respondents:** M/s. Moving…

## Timeline

- **2018-01-01 — Initial Appl…**: IB-1368(ND)/2018 filed by M/s. Virgo Services…
- **2019-06-11 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…

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