# In the matter of MANGLAM PAPER PRIVATE LIMITED

> NCLT judgment dated 2025-04-29. Citation: TCN-2025-NCLT-00155. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Manglam Paper…

- **Court:** NCLT
- **Order date:** 29 Apr 2025
- **Citation:** TCN-2025-NCLT-00155
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manglam-paper-private-limited-a5d8dc23

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Manglam Paper Private Limited. An application under Section 9 of the Insolvency and Bankruptcy Code (IBC) was filed by an Operational Creditor, Jagdishwar Trading Co., leading to the initiation of CIRP. Ashish Shah was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and constituted a Committee of Creditors (CoC). Several CoC meetings were held to discuss the resolution plan, appointment of registered valuers, and other CIRP-related matters. The CIRP period was extended multiple times. Ultimately, the CoC rejected the resolution plan and decided to initiate liquidation.

## Facts

Jagdishwar Trading Co., an operational creditor, initiated CIRP against Manglam Paper Private Limited under Section 9 of the IBC. Ashish Shah was appointed as the IRP. A public announcement was made, and a CoC was constituted. The CoC convened multiple meetings to discuss resolution plans and related matters. The CIRP period was extended several times. The CoC received multiple resolution plans, including one from Sonal Yogeshbhai Shah jointly with Wellfin Corporation. However, the CoC ultimately rejected the resolution plan with 81.95% voting share on 27.02.2025. The CoC decided to initiate liquidation due to the lack of a viable resolution plan and the expiry of the CIRP period. The financial creditors did not contribute to the CIRP costs. The applicant filed the

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## Issues and analysis

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

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

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**Reasoning:** The CoC, with 81.95% voting share, resolved to reject the resolution plan and initiate

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**Interpretation:** Section 33(2) mandates the Adjudicating Authority to pass a liquidation order

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**Application:** The CoC's decision to liquidate Manglam Paper Private Limited, supported by the

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Ashish…
- **Respondents:** Manglam Paper…

## Timeline

- **N/A — Application under…**: An application was filed under section 9 of the Code seeking initiation of the Corporate…
- **2024-04-22 — Admission of Petition…**: The Adjudicating Authority admitted the petition and appointed Mr. Ashish Shah as 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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