# In the matter of Dcom Systems Limited

> NCLT judgment dated 2024-05-15. Citation: TCN-2024-NCLT-01333. The case involves an application filed under Sections 33(2) and 34 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 May 2024
- **Citation:** TCN-2024-NCLT-01333
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dcom-systems-limited-a28c5b3b

## Summary

### Background

The case involves an application filed under Sections 33(2) and 34 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of liquidation proceedings against the Corporate Debtor, M/s. Dcom System Limited. The Financial Creditor, Indian Bank (Erstwhile Allahabad Bank), had initially filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority admitted the petition on 2024-01-17 and appointed the Applicant as the Interim Resolution Professional (IRP). The IRP made a public announcement on 2024-01-20, inviting claims from creditors. The Committee of Creditors (CoC) was constituted, and the first meeting was held on 2024-02-16, where the applicant was continued as the Resolution

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## Facts

The Financial Creditor, Indian Bank (Erstwhile Allahabad Bank), initiated Corporate Insolvency Resolution Process (CIRP) against M/s Dcom Systems Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority admitted the petition on 2024-01-17 and appointed Iqbal Singh Gandhi as the Interim Resolution Professional (IRP). The IRP made a public announcement on 2024-01-20, inviting claims from creditors, with a deadline of 2024-02-01. The Committee of Creditors (CoC) was constituted, and in its first meeting on 2024-02-16, the IRP was continued as the Resolution Professional (RP). The RP convened subsequent CoC meetings, apprising the members that the Corporate Debtor had a bank balance of Rs. 10.30 lacs in Axis

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Sections 33(2) and 34 of the Insolvency and …

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

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**Reasoning:** The Committee of Creditors (CoC) with a 91.16% majority approved the resolution for

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** In this case, the CoC, with a 91.16% majority, resolved to liquidate the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Iqbal Singh…
- **Respondents:** M/s Dcom System…

## Timeline

- **2024-01-17 — Admission of…**: The Adjudicating Authority admitted the…
- **2024-01-18 — Order Rec…**: Order received on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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