# In the matter of Ajanta Paper and General Products Ltd. IA. No. 3916 of 2022 in C.P.No.(IB)4277(MB) of 2018

> NCLT judgment dated 2023-01-02. Citation: TCN-2023-NCLT-05242. The case involves an application (I.A. No. 3916/2022) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 2 Jan 2023
- **Citation:** TCN-2023-NCLT-05242
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajanta-paper-and-general-products-ltd-ia-no-3916-of-2022-in-cpnoib4277mb-of-2018-52b476f5

## Summary

### Background

The case involves an application (I.A. No. 3916/2022) filed by the Resolution Professional (RP), Mr. Raj Kumar Dad, seeking liquidation of Ajanta Paper & General Products Ltd. (the Corporate Debtor) under Section 33(3) of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor after rejecting a resolution plan. The RP received only one resolution plan from Padmanabh Trading Pvt. Ltd., which was rejected by the CoC with 100% voting against it. The CoC approved the liquidation of the Corporate Debtor in its 11th meeting. The application seeks the initiation of the liquidation process and the appointment of the applicant as the liquidator.

## Facts

The Resolution Professional (RP), Mr. Raj Kumar Dad, filed an application (I.A. No. 3916/2022) seeking liquidation of Ajanta Paper & General Products Ltd. (Corporate Debtor) under Section 33(3) of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC), consisting of financial creditors, resolved to liquidate the Corporate Debtor. The RP received only one resolution plan from Padmanabh Trading Pvt. Ltd., which was rejected by the CoC with 100% voting. The CoC approved the liquidation of the Corporate Debtor in its 11th meeting on 25.11.2022. Form G was issued twice to invite expressions of interest. The Bench had previously granted a 90-day extension of the CIRP period on 19.04.2022. The CoC also approved the appointment of Mr. Raj Kumar Dad as

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Ajanta Paper & General …

**Ratio:** Section 33(3) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The CoC unanimously decided to liquidate the Corporate Debtor after the resolution plan

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**Interpretation:** Section 33(3) provides a mechanism for liquidation when the CIRP fails to

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**Application:** The CoC's decision to liquidate the Corporate Debtor, Ajanta Paper &

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Phoenix ARC Pvt.…
- **Respondents:** Ajanta Paper &…

## Timeline

- **2018-01-01 — C.P.(IB)-4277(…**: Filing of the Corporate Insolvency…
- **2021-11-02 — First CoC M…**: Resolution made to appoint Raj Kumar Dad as the Resolution Professional and thereafter…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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