# In the matter of Yag Mag Labs Pvt. Ltd. I.A. No. 835-2019 in CP (IB) No. 593-9-HDB-2018

> NCLT judgment dated 2019-10-14. Citation: TCN-2019-NCLT-00997. The case involves an application for liquidation of Yag Mag Labs Private Limited, filed by the…

- **Court:** NCLT
- **Order date:** 14 Oct 2019
- **Citation:** TCN-2019-NCLT-00997
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yag-mag-labs-pvt-ltd-ia-no-835-2019-in-cp-ib-no-593-9-hdb-2018-ffa58bca

## Summary

### Background

The case involves an application for liquidation of Yag Mag Labs Private Limited, filed by the Resolution Professional under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by Cosmic Chemicals, an operational creditor. An Interim Resolution Professional (IRP) was initially appointed, later replaced by A.V.S. Krishna Mohan as the Resolution Professional (RP).

## Facts

Cosmic Chemicals, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Yag Mag Labs Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted, and Mr. Ram Murthy Kommera was initially appointed as the Interim Resolution Professional (IRP). Later, Mr. A.V.S. Krishna Mohan replaced him as the Resolution Professional (RP). A Committee of Creditors (CoC) was formed, and several meetings were held. The CoC, in its fifth meeting, decided to seek an extension of the resolution process timeline. However, no resolution plan was submitted within the CIRP period. In the sixth CoC meeting, the members, representing 100% of the voting share, approved the liquidation of Yag Mag Labs Private

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## Issues and analysis

### Issue 1: Whether the Tribunal is obligated to order liquidation of the Corporate Debtor under Section …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC), 2016, mandates that where

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**Reasoning:** The Tribunal reasoned that the Resolution Professional had not filed any resolution plan

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**Interpretation:** Section 33(1)(a) is interpreted as a mandatory provision. If no resolution plan

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**Application:** In this case, since no resolution plan was submitted within the CIRP period for

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** Cosmic Che…
- **Respondents:** Yag Mag Labs…; Yag Mag Labs Pvt…

## Timeline

- **2018-01-01 — CP(IB) No. 593/9/HDB/201…**: Company Petition filed…
- **2019-02-18 — Appointment of Interim…**: Mr. Ram Murthy Kommera appointed as…

## 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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