# In the matter of Padia Timber Co. Pvt. Ltd. IB-559(ND0-2017

> NCLT judgment dated 2019-05-02. Citation: TCN-2019-NCLT-03562. The case involves Padia Timber Co. Pvt. Ltd. and pertains to an application under Section 10 of…

- **Court:** NCLT
- **Order date:** 2 May 2019
- **Citation:** TCN-2019-NCLT-03562
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/padia-timber-co-pvt-ltd-ib-559nd0-2017-9f1f00c0

## Summary

### Background

The case involves Padia Timber Co. Pvt. Ltd. and pertains to an application under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The Committee of Creditors (COC), with Bank of Baroda as the sole financial creditor, decided to proceed with liquidation as the resolution plan was rejected after negotiations. The application is regarding the appointment of a liquidator.

## Facts

Padia Timber Co. Pvt. Ltd. is the corporate debtor in this case. The application is filed under Section 10 of the IBC, 2016. The Committee of Creditors (COC), consisting solely of Bank of Baroda, decided to proceed with liquidation because the only resolution plan received was rejected after negotiations. The COC resolved to appoint the Resolution Professional (RP) as the liquidator. The court is considering the application for liquidation and the appointment of the liquidator. The consent of the designated liquidator is pending.

## Issues and analysis

### Issue 1: Whether the application for liquidation should be allowed given the decision of the Committee of …

**Ratio:** The decision of the COC to proceed with liquidation is a significant factor in

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**Reasoning:** The court reasoned that there was no legal impediment to permitting the liquidation since

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**Interpretation:** The interpretation of the IBC suggests that the COC's decision regarding

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**Application:** In this case, the court applied the ratio by acknowledging the COC's decision

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## Parties

- **Judges:** Ina Mal…; Deepa Kr…; +1 more
- **Respondents:** Padia Timber Co.…

## Timeline

- **2019-07-17 — Committee of Creditors…**: The Committee of Creditors (COC) held a final meeting where they passed a resolution to…
- **2019-05-02 — Order Del…**: The order was delivered allowing the liquidation proceedings against the assets of the…

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