# In the matter of M.P.L. Cars Pvt. Ltd. IA-264-IB-2020 in CP-885-IB-2018

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03232. The Interlocutory Application (IA/264/IB/2020) was filed under Section 33(4) of the Insolvency…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mpl-cars-pvt-ltd-ia-264-ib-2020-in-cp-885-ib-2018-2fcbe0a5

## Summary

### Background

The Interlocutory Application (IA/264/IB/2020) was filed under Section 33(4) of the Insolvency & Bankruptcy Code, 2016 by the Resolution Professional seeking liquidation of the Corporate Debtor, M/s. MPL Cars Private Limited. The CIRP of the Corporate Debtor was initiated on 13.08.2019. Ms. Priya S. Anand was appointed as IRP. The IRP made a public announcement calling for claims from creditors, with a deadline of 28.08.2019. The IRP constituted the Committee of Creditors (CoC) on 30.08.2019, consisting of three financial creditors. The IRP received claims from these creditors on 28.08.2019. The first CoC meeting was on 11.09.2019. The IRP informed the CoC that there was no response from the suspended directors regarding the books and records of the Corporate

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## Facts

The Corporate Debtor is M/s. MPL Cars Private Limited. The CIRP was initiated on 13.08.2019. Ms. Priya S. Anand was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement for claims. The Committee of Creditors (CoC) was formed on 30.08.2019, consisting of three financial creditors. The IRP received claims amounting to Rs. 4,032.46 Lakh from financial creditors and Rs. 100.28 Lakh from one operational creditor. The Operational Creditor filed an application to withdraw the CIRP. The IRP informed the CoC that there was no response from the suspended directors regarding the Corporate Debtor's records. The CoC decided to replace the IRP. Mr. K. Sivalingam was appointed as the Resolution Professional (RP). The RP sent intimation letters to

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. MPL Cars Private Limited, …

**Ratio:** The court is bound to follow the decision of the Committee of Creditors (CoC) when it

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**Reasoning:** The CoC, in its 4th meeting held on 12.12.2019, with 89.17% voting share, resolved to

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**Interpretation:** The Insolvency and Bankruptcy Code (IBC) empowers the CoC to make decisions

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was made

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## Parties

- **Judges:** R. Sucha…; Anil K…
- **Appellants:** K. Sival…
- **Respondents:** M/s. MPL Cars…; Singaravelu…

## Timeline

- **2018-01-01 — CP/885/IB…**: CP/885/IB/201…
- **2019-08-08 — Admission of CP/885/IB/2…**: CP/885/IB/2018 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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