# In the matter of DQ Entertainment (International) Limited

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00113. The case pertains to IA No. 1485 of 2023 in CP(IB) No. 402/7/HDB/2020, filed by the Resolution…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dq-entertainment-international-limited-4be71c6e

## Summary

### Background

The case pertains to IA No. 1485 of 2023 in CP(IB) No. 402/7/HDB/2020, filed by the Resolution Professional (RP) of the Corporate Debtor, M/s. DQ Entertainment (International) Limited, seeking liquidation under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with the IBBI (Liquidation Process) Regulations, 2016. The RP sought the appointment of Mr. Venka Reddy Bathina as the liquidator and condonation of delay in filing the application. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor (CD) following the admission of a company petition filed by M/s. Export-Import Bank of India. The Committee of Creditors (COC) decided to replace the Interim Resolution Professional (IRP) with the Applicant as the RP. The

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## Facts

The Corporate Debtor, M/s. DQ Entertainment (International) Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated by Export-Import Bank of India. An Interim Resolution Professional (IRP) was initially appointed but later replaced by a Resolution Professional (RP). The RP sought extensions for the CIRP period, which were granted by the Adjudicating Authority. Several Resolution Plans were received, but none were compliant with the Insolvency and Bankruptcy Code (IBC), 2016. The Committee of Creditors (COC), with a 68% voting share, resolved to liquidate the Corporate Debtor due to its lack of significant operations for the past four years and the non-compliance of the received Resolution Plans. The CIRP costs amounted to Rs. 2,68,87,857/- as of

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. DQ Entertainment …

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

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**Reasoning:** The Adjudicating Authority noted that no Resolution Plan was received under Sub-Section

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

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**Application:** In this case, the absence of a compliant Resolution Plan and the COC's decision

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## Parties

- **Judges:** SHRI. RAJEEV…; SHRI. SANJA…
- **Appellants:** Export Import…; Export-Import…
- **Respondents:** DQ Entertainment…

## Timeline

- **2020-01-01 — CP(IB) No. 402/7/HDB/202…**: Company Petition bearing CP (IB) No.402/7/HDB/2020 filed by M/s.Export-Import Bank of…
- **2022-06-17 — Admission of Company…**: Adjudicating Authority admitted the Company Petition bearing CP (IB) No.402/7/HDB/2020…

## 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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