# In the matter of Maqdoom Moghny Enterprises Pvt. Ltd.

> NCLT judgment dated 2023-06-28. Citation: TCN-2023-NCLT-02773. The case involves an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 28 Jun 2023
- **Citation:** TCN-2023-NCLT-02773
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maqdoom-moghny-enterprises-pvt-ltd-984ef8c3

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(1)(A) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of M/s. MaqdoomMoghny Enterprises Private Limited (Corporate Debtor). The Corporate Debtor was admitted into CIRP following an application by the Operational Creditor under Section 9 of the I&B Code, 2016. An earlier Resolution Professional was replaced due to non-cooperation from the suspended directors, and the CoC approved the initiation of liquidation proceedings as no resolution plan was received by the end of the CIRP period.

## Facts

Manish Fashionworld Pvt Ltd is the Operational Creditor, while Maqdoom Moghny Enterprises Pvt Ltd is the Corporate Debtor. The Corporate Debtor was admitted into CIRP following an application by the Operational Creditor under Section 9 of the I&B Code, 2016. An earlier Resolution Professional was replaced due to non-cooperation from the suspended directors. The Erstwhile Resolution Professional filed an IA.No.780/2022 under Section 19(2) of IBC, 2016 due to non-cooperation from the suspended directors. The CoC approved the initiation of liquidation proceedings as no resolution plan was received by the end of the CIRP period, which ended on 14.06.2023. The 11th CoC meeting was held on 08.06.2023. The applicant filed an IA.No.572/2023 for exclusion of 44 days from

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## Issues and analysis

### Issue 1: Whether the liquidation process against the …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to order liquidation if no

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**Reasoning:** The court reasoned that despite all possible steps taken during the CIRP, the CoC did not

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**Interpretation:** The interpretation of Section 33(2) of the IBC is that if the CIRP fails and

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**Application:** In this case, the CIRP failed, the CoC voted for liquidation, and the court

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Manish Fashionworl…
- **Respondents:** Maqdoom Moghny…

## Timeline

- **2022-05-13 — Tribunal…**: Tribunal allowed the application filed by the Operational Creditor under section 9 of I&B…
- **2022-07-25 — Tribunal…**: Tribunal passed an order in IA. (IBC) 703/2022 allowing the application on the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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