# In the matter of FDS Management Services Private Limited

> NCLT judgment dated 2024-01-03. Citation: TCN-2024-NCLT-03335. FDS Management Services Private Limited, the Corporate Applicant, initiated Corporate…

- **Court:** NCLT
- **Order date:** 3 Jan 2024
- **Citation:** TCN-2024-NCLT-03335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fds-management-services-private-limited-b447c891

## Summary

### Background

FDS Management Services Private Limited, the Corporate Applicant, initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the application on 09.01.2023 and declared a moratorium. Mr. Manoj Kumar Anand was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement inviting claims, and a Committee of Creditors (CoC) was constituted with Mr. Mahesh Singh as the sole member/financial creditor. Several CoC meetings were held to explore resolution plans, but none were received. The CoC ultimately decided to liquidate the Corporate Debtor due to a lack of viable resolution applicants and financial constraints.

## Facts

FDS Management Services Private Limited underwent Corporate Insolvency Resolution Process (CIRP) after an application was filed under Section 10 of the IBC. Mr. Manoj Kumar Anand was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted with Mr. Mahesh Singh as the sole financial creditor. The IRP made a public announcement inviting claims. Several CoC meetings were convened to explore resolution plans, but no viable plans were received. The CoC rejected proposals for interim finance and the publication of Form G due to a shortage of funds. The Corporate Debtor had outstanding dues from various entities, including the National Centre for Medium Range Weather

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, FDS Management Services Private …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in insolvency

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**Reasoning:** The CoC, with 100% majority, decided that there was no chance of resolution for the

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

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**Application:** The CoC's decision to liquidate FDS Management Services Private Limited was

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** FDS MANAGEMENT…

## Timeline

- **2023-01-09 — Admission…**: Adjudicating Authority…
- **2023-01-15 — Public Annou…**: IRP made a public announcement…

## 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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