# In the matter of Cosmos Forgings Limited I.A. No. 123 of 2022 in CP(IB) No. 228-7-HDB-2020

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02512. The case pertains to IA 123/2022 filed in CP(IB) No. 228/7/HDB/2020, concerning M/s Cosmos…

- **Court:** NCLT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLT-02512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cosmos-forgings-limited-ia-no-123-of-2022-in-cpib-no-228-7-hdb-2020-ac65687e

## Summary

### Background

The case pertains to IA 123/2022 filed in CP(IB) No. 228/7/HDB/2020, concerning M/s Cosmos Forgings Limited. The Company Petition for initiation of Corporate Insolvency Resolution Process (CIRP) was filed by the Financial Creditor, M/s. Affluence Engineering and Enterprises Limited, under Section 7 of the IBC, 2016. The petition was admitted on 26.08.2021, and the Applicant was appointed as the Interim Resolution Professional. Subsequently, the Applicant was appointed as the Resolution Professional. During the second CoC meeting on 25.10.2021, a resolution was passed to issue Form G (Invitation for Expression of Interest), which was published in Indian Express and Nava Telangana Daily Newspaper on 27.10.2021. The third CoC meeting was held on 08.01.2022, where

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Cosmos Forging Ltd by Affluence Engineering and Enterprises Ltd under Section 7 of the IBC, 2016. The application was admitted on 2021-08-26. The applicant was appointed as the Interim Resolution Professional and later as the Resolution Professional. The CoC resolved to issue Form G (Invitation for Expression of Interest) which was published on 2021-10-27. The CoC decided to proceed with liquidation as the Corporate Debtor had no business prospects and no interested party came forward during the CIRP. The CoC consisted of one Financial Creditor and three Operational Creditors, and they unanimously agreed on liquidation. The RP confirmed that there was no possibility of a resolution plan. The

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## Issues and analysis

### Issue 1: Whether the application bearing IA No. 123/2022 should be allowed, leading to the liquidation of …

**Ratio:** Section 33 of the I&B Code, 2016, allows the Adjudicating Authority to pass an order

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Section 30(6)

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** Given that no resolution plan was received and the CoC had resolved to

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## Parties

- **Judges:** Bhaskara Pantula…; BINOD KUMAR…
- **Respondents:** Cosmos Forg…

## Timeline

- **2021-08-26 — Admission of CIRP…**: The application for initiation of Corporate Insolvency Resolution Process (CIRP) was…
- **2021-10-25 — Second CoC…**: The CoC resolved to issue Form G…

## 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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