# In the matter of REDS Marine Services Limited IA-364(AHM) 2021 in C.P. (IB) 78-NCLT-AHM-2019

> NCLT judgment dated 2021-09-14. Citation: TCN-2021-NCLT-01122. The Resolution Professional (RP) of Reds Marine Services Limited filed an application seeking…

- **Court:** NCLT
- **Order date:** 14 Sept 2021
- **Citation:** TCN-2021-NCLT-01122
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reds-marine-services-limited-ia-364ahm-2021-in-cp-ib-78-nclt-ahm-2019-feaf66c4

## Summary

### Background

The Resolution Professional (RP) of Reds Marine Services Limited filed an application seeking initiation of liquidation process for the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2020-11-06. The initial period of 180 days expired on 2021-05-11. The Committee of Creditors (COC) did not approve the issuance of Expression of Interest (EOI) because the Corporate Debtor did not have tangible assets and its holding and subsidiary companies were also undergoing CIRP. In the fourth meeting of COC, after the expiry of 180 days, the COC approved the proposal for liquidation and recommended the appointment of RP as Liquidator.

## Facts

The Resolution Professional (RP) of Reds Marine Services Limited filed an application seeking initiation of liquidation process for the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2020-11-06. The initial period of 180 days expired on 2021-05-11. The Committee of Creditors (COC) did not approve the issuance of Expression of Interest (EOI) because the Corporate Debtor did not have tangible assets and its holding and subsidiary companies were also undergoing CIRP. In the fourth meeting of COC, after the expiry of 180 days, the COC approved the proposal for liquidation and recommended the appointment of RP as Liquidator. The applicant's counsel stated that all necessary regulations of CIRP Regulations 2016 had

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## Issues and analysis

### Issue 1: Whether the initiation of the liquidation process is …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the

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**Reasoning:** The court considered the facts and circumstances, noting that no resolution of insolvency

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**Interpretation:** Section 33(1) provides the legal basis for initiating liquidation when

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**Application:** Since no resolution was possible and the COC approved liquidation, the court

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Pinakin Shah RP…
- **Respondents:** Reds Marine…; Religare Finvest…
- **Advocates:** Pavan God…; Madan P…

## Timeline

- **2020-11-06 — Admission in…**: Corporate Debtor was admitted into Corporate…
- **2021-05-11 — Expiry of Initial CIRP…**: The initial period of 180…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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