# In the matter of Jivanjyot Motors Pvt. Ltd.

> NCLT judgment dated 2023-09-27. Citation: TCN-2023-NCLT-01450. The application was filed under section 33(2) and 34(1) of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Sept 2023
- **Citation:** TCN-2023-NCLT-01450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jivanjyot-motors-pvt-ltd-ce2e4f55

## Summary

### Background

The application was filed under section 33(2) and 34(1) of the Insolvency and Bankruptcy Code, 2016, for initiating liquidation of the Corporate Debtor, Jivanjyot Motors Pvt. Ltd. The CIRP was initiated by AKZO Nobel India Ltd. under Section 7 of the IBC, 2016, due to alleged outstanding debts. The petition was admitted on 20.10.2022, and a moratorium was imposed. Ajay Kumar Jain was appointed as the Interim Resolution Professional (IRP). The IRP submitted multiple progress reports and sought an extension of the CIRP period, which was approved until 19.04.2023. During the CIRP, the suspended directors did not cooperate with the RP, leading to contempt proceedings. The RP published Form-G multiple times, but no resolution plan was received. The Committee of Creditors

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## Facts

AKZO Nobel India Ltd. initiated CIRP against Jivanjyot Motors Pvt. Ltd. under Section 7 of IBC, 2016, due to outstanding debts. The petition was admitted on 20.10.2022, imposing a moratorium. Ajay Kumar Jain was appointed as IRP. The IRP submitted progress reports and sought CIRP extension until 19.04.2023. Suspended directors did not cooperate, leading to contempt proceedings. Form-G was published multiple times, but no resolution plan was received. The CoC, solely Axis Bank, approved liquidation on 23.06.2023. The RP initiated CIRP with deviations and faced difficulties in obtaining claims. The Corporate Debtor had a significant cash balance not deposited in its bank account. The liquidation value was lower than the total claims. The Corporate Debtor had outstanding

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Jivanjyot Motors Pvt. Ltd., should be liquidated under the …

**Ratio:** The commercial wisdom of the CoC is paramount, and the Adjudicating Authority should not

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**Reasoning:** The CoC, with 100% voting share, approved the liquidation of the Corporate Debtor. The

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**Interpretation:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass a

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**Application:** In this case, the CoC approved the liquidation of the Corporate Debtor due to

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## Parties

- **Judges:** SHAMMI…; V. G. Venkata…
- **Appellants:** Ajay Kuma…
- **Respondents:** Jivanjyot Motors…; Jivanjoyt Motors…

## Timeline

- **2021-01-01 — Initiation…**: AKZO Nobel India Ltd. filed an application under Section 7 of the IBC, 2016, against…
- **2022-10-20 — Admission of…**: The Tribunal admitted the…

## 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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