# In the matter of M.S.M. Energy Ltd. IA(IBC)-309-2021 in CP(IB) No. 506-7-HDB-2019

> NCLT judgment dated 2021-07-08. Citation: TCN-2021-NCLT-01806. The case pertains to an application filed by the Resolution Professional (RP) under Sections 33…

- **Court:** NCLT
- **Order date:** 8 Jul 2021
- **Citation:** TCN-2021-NCLT-01806
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/msm-energy-ltd-iaibc-309-2021-in-cpib-no-506-7-hdb-2019-993770d2

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) under Sections 33 and 34 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking orders for the liquidation of M/s M.S.M.Energy Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 7 of the IBC on October 15, 2019. The RP, Mr. Anup Kumar Singh, was appointed in the first Committee of Creditors (CoC) meeting on September 19, 2019. Form G was issued, setting January 18, 2020, as the last date for submission of Expression of Interest (EOI). The process faced challenges, including a lack of EOIs due to ongoing holidays and subsequent extensions granted by the CoC. Ultimately, the CoC rejected the

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## Facts

M/s M.S.M.Energy Limited is the Corporate Debtor. An application was filed by the Resolution Professional (RP), Mr. Anup Kumar Singh, under Sections 33 and 34 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation orders. The Corporate Insolvency Resolution Process (CIRP) was initiated on October 15, 2019, following the admission of a petition under Section 7 of the IBC. The RP was appointed on September 19, 2019. The last date for submission of Expression of Interest (EOI) was initially set for January 18, 2020, but was extended due to a lack of EOIs. Two prospective resolution applicants, M/s. S.C.Agarwal and Rainbow Food Products Private Limited, submitted EOIs. Rainbow Foods Products Private Limited later withdrew its proposal. M/s. S.C.Agarwal was

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Sections 33 and 34 of the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code mandates the Adjudicating Authority

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**Reasoning:** The CoC, in its wisdom, resolved with a 99% voting share in favor of the liquidation of

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**Interpretation:** Section 33(1) of the IBC obligates the Adjudicating Authority to initiate

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**Application:** Given that the CoC has resolved to liquidate the Corporate Debtor with a 99%

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## Parties

- **Judges:** Madan B.…; BINOD KUMAR…
- **Appellants:** Acquqint Engineers…
- **Respondents:** M.S.M.Ener…

## Timeline

- **2019-10-15 — Admission of…**: The Tribunal admitted the petition bearing CP (IB) No. 506/7/HDB/2019 under Section 7 of…
- **2019-09-19 — Appointment of…**: Shri Anup Kumar Singh was appointed as the Resolution Professional in the First COC…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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