# In the matter of AJS Impex Private Limited

> NCLT judgment dated 2024-04-30. Citation: TCN-2024-NCLT-01515. The application was filed by the Resolution Professional of AJS Impex Private Limited under…

- **Court:** NCLT
- **Order date:** 30 Apr 2024
- **Citation:** TCN-2024-NCLT-01515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ajs-impex-private-limited-33890a85

## Summary

### Background

The application was filed by the Resolution Professional of AJS Impex Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, and Rule 11 of the NCLT Rules, 2016, seeking initiation of liquidation of the Corporate Debtor. The Company Petition (IB)/93(MB)2022 was filed under Section 7 of the Code and was admitted by the Tribunal on 15.07.2022, initiating the CIRP of the Corporate Debtor. Mr. Jayesh Mehta, the Resolution Applicant, submitted a revised final resolution plan on 05.09.2023, which was presented to the CoC. The CoC rejected the resolution plan with a voting share of 86.96%. The Resolution Applicant submitted an addendum to the Resolution Plan on 0.12.2023, requesting reconsideration, and the CoC inquired about enhancing the plan

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## Facts

AJS Impex Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 15.07.2022. Mr. Jayesh Mehta, the Resolution Applicant, submitted a revised final resolution plan on 05.09.2023, which was rejected by the Committee of Creditors (CoC) with a voting share of 86.96%. The Resolution Applicant submitted an addendum to the Resolution Plan on 0.12.2023, requesting reconsideration, but the CoC was not inclined to consider the request. The CoC then passed a resolution to liquidate the Corporate Debtor with a voting share of 80.19%. The Resolution Professional filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of liquidation. The Adjudicating Authority considered the submissions and noted the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, AJS Impex Private Limited, should …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, provides that where the

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was approved by the CoC, and the

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**Interpretation:** Section 33(2) mandates liquidation when the CIRP fails to produce a viable

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**Application:** In this case, the CoC rejected the resolution plan, and no alternative plan was

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Respondents:** AJS Impex Private…

## Timeline

- **2022-07-15 — CIRP Init…**: The Corporate Insolvency Resolution Process (CIRP) of AJS Impex Private Limited was…
- **2023-09-05 — Resolution Plan…**: Mr. Jayesh Mehta, the Resolution Applicant,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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