# In the matter of DMB Paper Mills Pvt. Ltd.

> NCLT judgment dated 2023-08-29. Citation: TCN-2023-NCLT-01869. The case involves multiple applications (IA/922(AHM)2022, IA/646(AHM)2023, and IA/484(AHM)2022)…

- **Court:** NCLT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLT-01869
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dmb-paper-mills-pvt-ltd-114efa33

## Summary

### Background

The case involves multiple applications (IA/922(AHM)2022, IA/646(AHM)2023, and IA/484(AHM)2022) filed in connection with the Corporate Insolvency Resolution Process (CIRP) of DMB Paper Mills Pvt. Ltd. CP(IB) No. 25 of 2019 was initiated following a Section 10 application, admitting the Corporate Debtor into CIRP on 2021-11-24. The Interim Resolution Professional (IRP) made a public announcement on 2021-12-04 and constituted a Committee of Creditors (CoC) comprising Union Bank of India. The CoC appointed the applicant as the Resolution Professional (RP). Form G was published on 2022-07-20, and the Request for Resolution Plan (RFRP) was approved on 2022-08-11. IA 645 of 2022 was filed by the RP seeking exclusion of 45 days, which was ordered on 2022-08-01. IA 736 of 2022

…

## Facts

DMB Paper Mills Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) after a Section 10 application was admitted on 2021-11-24. Vijay Prakash Usharia was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed with Union Bank of India as the sole financial creditor. Several applications were filed during the CIRP, including IA 645/2022 and IA 736/2022, seeking extensions of the CIRP timeline. Three resolution plans were received but deemed unviable by the CoC. Krishkan Investment Private Limited, assignee of debt from Union Bank of India, filed IA 646/2023 seeking substitution of the RP. The CoC, with 100% majority, passed a resolution for liquidation on 2022-10-04. The RP then filed IA/922(AHM)2022 seeking liquidation.

…

## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, DMB Paper Mills Private Limited, is justified …

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

…

**Reasoning:** The Committee of Creditors (CoC) voted with a 100% majority to liquidate the Corporate

…

**Interpretation:** Section 33(2) provides a clear legal basis for liquidation when the CIRP fails

…

**Application:** In this case, the CoC, comprising Union Bank of India, voted unanimously for

…

## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Vijay Prakash…
- **Respondents:** DMB Paper Mills…; Infra…

## Timeline

- **2019-01-01 — CP(IB) No. 25…**: Initiation of Corporate Insolvency Resolution Process (CIRP) against DMB Paper Mills Pvt.…
- **2021-11-24 — Admission in…**: Corporate Debtor (CD) admitted into Corporate Insolvency Resolution Process (CIRP) vide…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dmb-paper-mills-pvt-ltd-114efa33