# In the matter of LI Digital Payments Private Limited

> NCLT judgment dated 2025-03-13. Citation: TCN-2025-NCLT-00365. The case involves an application for liquidation of the Corporate Debtor, M/s. LI Digital…

- **Court:** NCLT
- **Order date:** 13 Mar 2025
- **Citation:** TCN-2025-NCLT-00365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/li-digital-payments-private-limited-c555d3f1

## Summary

### Background

The case involves an application for liquidation of the Corporate Debtor, M/s. LI Digital Payments Pvt. Ltd., under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Committee of Creditors (CoC) passed a resolution to liquidate the corporate debtor with 100% vote share. The Resolution Professional (RP) presented the resolution to the Adjudicating Authority (NCLT).

## Facts

The Corporate Debtor, M/s. LI Digital Payments Pvt. Ltd., is undergoing Corporate Insolvency Resolution Process (CIRP) under the IBC, 2016. The Committee of Creditors (CoC) passed a resolution with 100% vote share to liquidate the Corporate Debtor. The RP presented the resolution to the NCLT. The CoC considered the status of the corporate debtor and concluded that its revival as a going concern was not commercially feasible. The funds and assets of the company were insufficient to meet the costs and expenses of the insolvency administration. The CoC also considered proposals for taking new premises on rent, changing the registered office, seeking extension of time for CIRP, and ratifying applications filed with NCLT. The CoC decided to appoint another insolvency

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is required to pass a liquidation order based on the resolution …

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

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**Reasoning:** The court reasoned that the CoC had passed a resolution to liquidate the corporate

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**Interpretation:** Section 33(2) of the IBC, 2016, is interpreted to mean that the Adjudicating

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**Application:** In this case, the CoC had passed a resolution to liquidate the corporate

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## Parties

- **Judges:** SH. ASHOK KUMAR…; Reena Sinh…
- **Appellants:** Faihzan…
- **Respondents:** LI Digital…; M/s. LI Digital…

## Timeline

- **2025-05-15 — Hearing De…**: Hearing deferred to 15.05.2025 at the…
- **2022-09-16 — CoC Resol…**: Resolution dated 16.09.2022 passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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