# In the matter of Ila Metals Pvt. Ltd.

> NCLT judgment dated 2024-07-08. Citation: TCN-2024-NCLT-01053. The case pertains to an application filed under Section 33 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 8 Jul 2024
- **Citation:** TCN-2024-NCLT-01053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ila-metals-pvt-ltd-aed4ee4b

## Summary

### Background

The case pertains to an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor, M/s Ila Metals Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 9 of the Code by an Operational Creditor, M/s Somani Multibiz Private Limited. The Adjudicating Authority admitted the Corporate Debtor into CIRP. The Interim Resolution Professional (IRP), Shivkumar Madanlal Baser, made a public announcement regarding the CIRP initiation. Several meetings of the Committee of Creditors (CoC) were convened. The CoC ultimately decided to liquidate the Corporate Debtor due to the absence of assets. The IRP filed the present application for liquidation.

## Facts

M/s Ila Metals Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) following an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) by an Operational Creditor, M/s Somani Multibiz Private Limited. Shivkumar Madanlal Baser was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement regarding the initiation of CIRP. The last date for submission of claims was 20.02.2023. The IRP received a claim from one operational creditor for Rs. 1,79,24,908.30. Several meetings of the Committee of Creditors (CoC) were convened. The CoC was of the opinion to directly go for liquidation of the Corporate Debtor as there were no assets with the Corporate Debtor. The 6th, 7th and 8th CoC meetings could not

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## Issues and analysis

### Issue 1: Whether the application for liquidation should be allowed given the expiry of the CIRP period and …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The CoC, with a 91.16% majority, passed a resolution seeking liquidation of the Corporate

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** In this case, the CoC's decision to liquidate, coupled with the absence of

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## Parties

- **Judges:** SAMEER…; SHAMMI…
- **Appellants:** Shivkumar…
- **Respondents:** M/s Ila Metals…

## Timeline

- **2023-02-08 — Admittance…**: The Corporate Debtor…
- **2023-02-15 — Public Annou…**: Public announcement…

## Legal provisions

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

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