# In the matter of GFM Retail Private Limited

> NCLT judgment dated 2024-12-18. Citation: TCN-2024-NCLT-00036. The case pertains to an application filed under Section 33(1)(a), 33(2), and 34(1) of the…

- **Court:** NCLT
- **Order date:** 18 Dec 2024
- **Citation:** TCN-2024-NCLT-00036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gfm-retail-private-limited-0f3348e8

## Summary

### Background

The case pertains to an application filed under Section 33(1)(a), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, seeking liquidation of the Corporate Debtor, GFM Retail Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against GFM Retail Private Limited following an application filed by the Financial Creditor, Axis Trustee Services Limited, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated vide order dated 18.03.2024. The applicant was appointed as the Interim Resolution Professional (IRP).

## Facts

Axis Trustee Services Limited, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against GFM Retail Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated on 18.03.2024. The applicant was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 16.04.2024. The Committee of Creditors (CoC) was constituted, with Axis Trustee Services Limited holding 93.72% of the voting share and MITCON Credentia Trusteeship Services Limited holding 6.28%. The applicant sought Expression of Interest (EOI) from prospective resolution applicants, with the last date for submission of the resolution plan being 26.07.2024. One EOI was received from Nakshatra Asset Ventures Limited, but

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, GFM Retail Private Limited, should …

**Ratio:** Section 33(2) of the IBC, 2016 allows the Adjudicating Authority to order the liquidation

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**Reasoning:** The CoC unanimously approved the liquidation of the Corporate Debtor in its meeting held

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** The CoC's unanimous approval for liquidation, coupled with the absence of a

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Hitesh Narayanpras…
- **Respondents:** GFM Retail…; Axis Trustee…
- **Advocates:** Nikita…; Prasa…

## Timeline

- **2024-03-18 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against GFM Retail Private…
- **2024-04-16 — Public Annou…**: 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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