# In the matter of Kohinoor Ginning And Pressing Private Limited

> NCLT judgment dated 2024-05-02. Citation: TCN-2024-NCLT-01469. The application was filed by the Resolution Professional of M/s Kohinoor Ginning and Pressing…

- **Court:** NCLT
- **Order date:** 2 May 2024
- **Citation:** TCN-2024-NCLT-01469
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kohinoor-ginning-and-pressing-private-limited-2e169c2b

## Summary

### Background

The application was filed by the Resolution Professional of M/s Kohinoor Ginning and Pressing Private Limited, which was admitted to CIRP on 2023-11-02. The CoC decided that there is no scope for revival or resolution of the corporate debtor. Continuing CIRP would diminish the value of assets and incur unnecessary expenses. The corporate debtor desired early liquidation without taking steps towards resolution. In the first CoC meeting, it was decided to defer other agendas, including the publication of Form ‘G'.

## Facts

Kohinoor Ginning and Pressing Private Limited was admitted to CIRP on 2023-11-02. The Committee of Creditors (CoC) determined that there was no prospect of reviving or resolving the corporate debtor. The CoC decided to pursue direct liquidation to avoid diminishing asset value and incurring unnecessary expenses. The corporate debtor's operations had been shut down for seven years. The creditors unanimously approved the liquidation resolution with 100% voting. The Resolution Professional, Mr. Manoj Kumar Mishra, consented to act as liquidator. The IBBI communication regarding resolution professionals acting as liquidators was considered, but no reason was found to disallow the current RP. Another application (I.A. 1725/2024) was filed under Section 19(2) seeking

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## Issues and analysis

### Issue 1: Whether the corporate debtor, Kohinoor Ginning and Pressing Private Limited, should be put into …

**Ratio:** The decision to liquidate a corporate debtor rests on the commercial wisdom of the

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**Reasoning:** The court reasoned that the CoC, having considered the corporate debtor's prolonged

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**Interpretation:** This interprets the IBC to allow for liquidation when the CoC determines that

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**Application:** Given the CoC's unanimous decision and the corporate debtor's prolonged

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Ahmednagar…
- **Respondents:** Kohinoor Ginning…

## Timeline

- **2023-11-02 — CIRP Admi…**: Kohinoor Ginning and Pressing…
- **2024-03-01 — Financial Creditor's…**: Ahmednagar Merchants Co-operative Bank Limited sent a mail about the unviability of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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