# In the matter of Champalal Motilal Steel Company Pvt. Ltd. M.A. 566 of 2020 in CP (IB) - 482-MB-2019

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02931. The case involves an application (M.A. No. 566/2020) filed by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02931
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/champalal-motilal-steel-company-pvt-ltd-ma-566-of-2020-in-cp-ib-482-mb-2019-04d8d91d

## Summary

### Background

The case involves an application (M.A. No. 566/2020) filed by the Resolution Professional, Mr. Rajan Rawat, seeking liquidation of Champalal Motilal Steel Company Pvt. Ltd. (the Corporate Debtor) under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following the admission of a petition under Section 9 of the Code filed by Brahmacharini Vyapar Pvt. Ltd. (the Operational Creditor) on 03.06.2019. Mr. Rajan Rawat was appointed as the Interim Resolution Professional (IRP).

## Facts

Brahmacharini Vyapar Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Champalal Motilal Steel Company Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 03.06.2019. Mr. Rajan Rawat was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (COC) was formed, and in its 4th meeting on 12.12.2019, the members unanimously decided to opt for liquidation of the Corporate Debtor as no resolution plan was received. Mr. Rajan Rawat was also appointed as the liquidator. Consequently, an application (M.A. No. 566/2020) was filed seeking liquidation of the Corporate Debtor under Section 33(2) of the Code. The relevance of the facts is that they establish the sequence of events

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Champalal Motilal Steel Company …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of

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**Reasoning:** The court observed that the COC had unanimously decided to liquidate the Corporate Debtor

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a corporate debtor

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**Application:** In this case, the COC unanimously decided to liquidate the Corporate Debtor,

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Brahmacharini…
- **Respondents:** Champalal Motilal…; Champalal Motilal…
- **Advocates:** Pooja P…; Manoj M…

## Timeline

- **2019-06-03 — Admission of…**: Petition under Section 9 of the Code filed by…
- **2019-07-05 — First COC M…**: First meeting of the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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