# In the matter of Force 1 Gaunding Services Private Limited

> NCLT judgment dated 2023-09-12. Citation: TCN-2023-NCLT-01706. The application MA/(IBC)/6/CHE/2023 in IBA/319/2020 was filed under Section 33(2) and 60(5) of…

- **Court:** NCLT
- **Order date:** 12 Sept 2023
- **Citation:** TCN-2023-NCLT-01706
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/force-1-gaunding-services-private-limited-f63cc8d3

## Summary

### Background

The application MA/(IBC)/6/CHE/2023 in IBA/319/2020 was filed under Section 33(2) and 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor, Force 1 Guarding Services Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an application under Section 9 of IBC 2016. The Tribunal appointed an Interim Resolution Professional (IRP). The applicant made a public announcement as per Section 15 of the Code. The Committee of Creditors (CoC) approved the appointment of the applicant as the Resolution Professional. The CoC recommended liquidation of the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Force 1 Guarding Services Private Limited following an application under Section 9 of the IBC, 2016. K. K. Balasubramanian was appointed as the Resolution Professional (RP). The RP made a public announcement as required by Section 15 of the Code. The first meeting of the Committee of Creditors (CoC) approved the appointment of the RP. The RP appointed two valuers to evaluate the company's assets. The accounts of the Corporate Debtor were not finalized for the last two years. The CoC recommended liquidation of the Corporate Debtor due to various reasons, including unrecovered trade receivables, unpaid statutory dues, customers closing down or facing insolvency, meager assets compared to

…

## Issues and analysis

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

**Ratio:** Section 33(2) of the IBC, 2016, states that where the resolution professional intimates

…

**Reasoning:** The Committee of Creditors with 85.33% of voting rights resolved to liquidate the

…

**Interpretation:** Section 33(2) of the IBC, 2016, provides the legal basis for the Adjudicating

…

**Application:** The CoC approved the liquidation of Force 1 Guarding Services Private Limited

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** K. K. Balasubraman…
- **Respondents:** Force 1 Guarding…; A. Renga…

## Timeline

- **2021-02-25 — CIRP Init…**: The Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) against Force 1…
- **2021-04-07 — First CoC M…**: The first meeting of the Committee of Creditors (CoC) was held, wherein they approved the…

## 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/force-1-gaunding-services-private-limited-f63cc8d3