# In the matter of The Mobile Store Services Ltd. MA 699-2018 & MA 934-2019 in C.P. (IB)-1604(MB)-2017

> NCLT judgment dated 2019-10-01. Citation: TCN-2019-NCLT-01135. The case involves MA 699/2018 and MA 934/2019 in CP(IB)-1604(MB)/2017 before the National…

- **Court:** NCLT
- **Order date:** 1 Oct 2019
- **Citation:** TCN-2019-NCLT-01135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/the-mobile-store-services-ltd-ma-699-2018-ma-934-2019-in-cp-ib-1604mb-2017-002821e3

## Summary

### Background

The case involves MA 699/2018 and MA 934/2019 in CP(IB)-1604(MB)/2017 before the National Company Law Tribunal, Mumbai Bench. MA 699/2018 was filed by the RP under Section 19(2) against the Ex Director of the Debtor Company, which was later withdrawn. MA-934/2019 was filed by the present RP seeking an order under Section 3(1)(A) of the I&B Code to commence the liquidation process against the Corporate Debtor. The Resolution of the COC dated 28.02.2019 approved liquidation due to non-receipt of a Resolution Plan.

## Facts

Drive India Enterprise Solution Ltd. is the corporate debtor. MA 699/2018 was filed by the RP against the Ex Director of the Debtor Company under Section 19(2), but it was later withdrawn. The substituted RP informed that the information has already been received. MA-934/2019 was filed by the present RP seeking an order under Section 3(1)(A) of the I&B Code to commence the liquidation process. The COC approved liquidation on 28.02.2019 due to non-receipt of a Resolution Plan. The CIRP period expired on 23.02.2019. The present RP has also given consent to function as Liquidator appointed to commence the Liquidation process. Resolution of liquidation was unanimously approved by the Members of the COC.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor should be approved given the COC's …

**Ratio:** The court can approve the liquidation of a corporate debtor if the COC has approved it

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**Reasoning:** The COC's approval for liquidation, based on the non-receipt of a resolution plan,

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**Interpretation:** This interprets the I&B Code provisions related to the liquidation process,

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**Application:** The court applied this ratio to the facts, noting the COC's resolution and the

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Respondents:** Drive India…

## Timeline

- **2019-02-28 — COC Resol…**: The COC passed a resolution approving…
- **2019-02-23 — CIRP Exp…**: The CIRP period…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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