# In the matter of Novex Pvt. Ltd. CA No.503-C-III-ND-2019

> NCLT judgment dated 2019-09-04. Citation: TCN-2019-NCLT-01580. The application was moved by the Resolution Professional (RP) seeking the initiation of…

- **Court:** NCLT
- **Order date:** 4 Sept 2019
- **Citation:** TCN-2019-NCLT-01580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/novex-pvt-ltd-ca-no503-c-iii-nd-2019-f3de3b92

## Summary

### Background

The application was moved by the Resolution Professional (RP) seeking the initiation of liquidation of the Corporate Debtor (CD) under Section 33 (1) (a) (i) read with sub Section 2 of IBC, 2016. The CIR process was initiated on 10.12.2018. Claims were received only from the Operational Creditor (OC). The COC was constituted on 11.1.2019, and the first meeting was held on 16.1.2019. The registered Valuers were appointed by the COC on 22.1.2019. The fair value was arrived at Rs.10,93,664/-, and the liquidation value is Rs.5,39,256/-. The RP had issued publication inviting Expression of Interest (EOI) on 28.2.2019, 14.5.2019 & 22.6.2019. No Resolution Plan was received for resolving the insolvency of the CD. In the 8th COC Meeting, a resolution seeking liquidation of

…

## Facts

JM Kapoor & Company, the Petitioner, initiated a Corporate Insolvency Resolution Process (CIRP) against Novex (P) LTD, the Corporate Debtor (CD). The CIRP was initiated on 10.12.2018. The Committee of Creditors (COC) was formed on 11.1.2019. Despite efforts to find a resolution plan, including inviting Expressions of Interest (EOI), no resolution plan was received. The COC, consisting of the sole Operational Creditor (OC), passed a resolution seeking liquidation of the CD in its 8th meeting. The Resolution Professional (RP) moved an application for liquidation. The Tribunal considered the RP's submissions and the absence of any resolution plan. The Tribunal appointed Mr. Ranjan Chakraborti as the Liquidator, based on the COC's recommendation. The liquidation value

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the failure of the Corporate Insolvency …

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

…

**Reasoning:** The Tribunal noted that despite the initiation of the CIRP and efforts to find a

…

**Interpretation:** Section 33 of the IBC provides a mechanism for liquidation when the CIRP fails

…

**Application:** In this case, the CIRP failed to produce a resolution plan, and the COC

…

## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** JM Kapoor &…
- **Respondents:** NOVEX (P…

## Timeline

- **2018-12-10 — CIRP Init…**: Corporate Insolvency Resolution…
- **2019-01-11 — COC Form…**: Committee of Creditors…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/novex-pvt-ltd-ca-no503-c-iii-nd-2019-f3de3b92