# In the matter of Stockflow Express Pvt. Ltd. IA-1423-2020 in (IB)-2414 (ND)-2019

> NCLT judgment dated 2020-11-05. Citation: TCN-2020-NCLT-00291. The Interim Resolution Professional (IRP) filed a petition under Section 33(2) of the…

- **Court:** NCLT
- **Order date:** 5 Nov 2020
- **Citation:** TCN-2020-NCLT-00291
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stockflow-express-pvt-ltd-ia-1423-2020-in-ib-2414-nd-2019-f271225b

## Summary

### Background

The Interim Resolution Professional (IRP) filed a petition under Section 33(2) of the Insolvency & Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor after the Committee of Creditors (CoC) resolved with 100% voting share to recommend liquidation.

## Facts

The Interim Resolution Professional (IRP) filed a petition under Section 33(2) of the Insolvency & Bankruptcy Code, 2016 (Code), seeking the liquidation of the Corporate Debtor, Stockflow Express Pvt. Ltd. The Corporate Debtor had been put under Corporate Insolvency Resolution Process (CIRP) by an order dated November 26, 2019, issued by NCLT Bench V, Delhi. The IRP made a public announcement on November 29, 2019, inviting claims from creditors, subsequently verifying them and constituting the Committee of Creditors (CoC). The CoC was constituted under Section 16(1) of the IBBI (CIRP) Regulations 2016 and comprised four operational creditors. In its first meeting on December 26, 2019, the CoC did not confirm the IRP as the Resolution Professional (RP). The IRP

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated as per the resolution passed by the Committee of …

**Ratio:** The Adjudicating Authority shall pass a liquidation order where the resolution

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**Reasoning:** The CoC, with 100% voting share, resolved to recommend liquidation of the Corporate

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**Interpretation:** Section 33(2) of the IBC, 2016, mandates the Adjudicating Authority to pass a

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**Application:** Given that the CoC passed a resolution with 100% voting share to liquidate the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Argus Global…; Argus Global…
- **Respondents:** Stockflow Express…; STOCKFLOW EXPRESS…
- **Advocates:** Kumar S…; Alok Ka…; +4 more

## Timeline

- **November 26, 2019 — CIRP Init…**: The Corporate Debtor, Stockflow Express Pvt Ltd, was put under Corporate Insolvency…
- **November 29, 2019 — Public Annou…**: The Interim Resolution Professional (IRP) made a public announcement calling for claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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