# In the matter of LSML Private Limited {IA0IBC)-1518-CHE-2023 in CP-IB-25-CHE-2023]

> NCLT judgment dated 2023-10-12. Citation: TCN-2023-NCLT-01260. The case pertains to an application filed under Section 33(2) and 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Oct 2023
- **Citation:** TCN-2023-NCLT-01260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lsml-private-limited-ia0ibc-1518-che-2023-in-cp-ib-25-che-2023-7e411d2c

## Summary

### Background

The case pertains to an application filed under Section 33(2) and 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, LSML Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 9 of the IBC, 2016. Initially, Mr. N. Venkatesh was appointed as the Interim Resolution Professional (IRP), later replaced by the applicant, Ajay S Jain, as the Resolution Professional (RP). Public announcement was made as per Section 15 of the Code. Despite efforts, no resolution plan was approved by the Committee of Creditors (CoC), leading to a unanimous decision in the 6th CoC meeting on 23.06.2023 to liquidate the Corporate Debtor.

## Facts

On 14.10.2022, the Corporate Insolvency Resolution Process (CIRP) was initiated against LSML Private Limited following an application under Section 9 of the IBC, 2016. Mr. N. Venkatesh was initially appointed as the Interim Resolution Professional (IRP). Subsequently, Ajay S Jain was appointed as the Resolution Professional (RP) on 02.02.2023. A public announcement was made on 20.10.2022, as required by Section 15 of the Code. The first meeting of the Committee of Creditors (CoC) was held on 16.11.2022, where Ajay S Jain was proposed as the RP. Form G and EOI were published on 23.03.2023, inviting resolution plans. An application (IA/859/CHE/2023) was filed seeking an extension of the CIRP, which was allowed until 15.06.2023. In the 6th CoC meeting held on 23.06.2023,

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, LSML Private Limited, under …

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

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**Reasoning:** The CoC unanimously resolved to liquidate the Corporate Debtor in its 6th meeting held on

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the CoC,

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**Application:** In this case, the CoC's unanimous decision to liquidate the Corporate Debtor,

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Ajay S…
- **Respondents:** LSML Private…
- **Advocates:** Jeyanthi…

## Timeline

- **2022-10-14 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2022-10-20 — Public Annou…**: Applicant made a Public Announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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