# In the matter of MBS Impex Private Limited IA 1223-2020 & IA (IBC) 169-2022 in CP(IB) No. 407-7-HDB-2019

> NCLT judgment dated 2022-03-01. Citation: TCN-2022-NCLT-03938. The case involves an application for liquidation of M/s MBS Impex Private Limited under Section…

- **Court:** NCLT
- **Order date:** 1 Mar 2022
- **Citation:** TCN-2022-NCLT-03938
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mbs-impex-private-limited-ia-1223-2020-ia-ibc-169-2022-in-cpib-no-407-7-hdb-2019-63856a9e

## Summary

### Background

The case involves an application for liquidation of M/s MBS Impex Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 7 of the Code. An Interim Resolution Professional was appointed, later replaced by the applicant, Santosh Bhatia, as the Resolution Professional. Due to a lack of cooperation from the Corporate Debtor's directors and delays caused by the COVID-19 pandemic, the CIRP faced significant challenges. The Committee of Creditors (CoC) voted in favor of liquidation, leading to the current application.

## Facts

ICICI Bank Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against MBS Impex Pvt Ltd. under Section 7 of the IBC, 2016. The petition was admitted on 2019-11-13. Sridhar Venkatraya Sundararaja was appointed as the Interim Resolution Professional, later replaced by Santosh Bhatia as the Resolution Professional. There was a lack of cooperation from the directors of MBS Impex Pvt Ltd. The COVID-19 pandemic caused delays in the CIRP. The CoC voted for liquidation on 2020-12-07 and 2020-12-08. The Resolution Professional filed an application (IA No. 1233 of 2020) for liquidation under Section 33(2) of the IBC. The Corporate Debtor sought time to settle with the Financial Creditor, but no settlement occurred. The NCLT considered the application and the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of M/s MBS Impex Private Limited under Section 33(2) of the …

**Ratio:** The primary object of the IBC is resolution, but liquidation is the last resort when

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**Reasoning:** The court reasoned that the CIRP had failed to achieve a resolution due to a lack of a

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**Interpretation:** Section 33(2) of the IBC allows for liquidation when resolution efforts have

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**Application:** In this case, the court applied the ratio and reasoning to the facts, noting

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Santosh B…
- **Respondents:** MBS Impex P…

## Timeline

- **2019-11-13 — Admission of…**: The Tribunal admitted the petition bearing CP (IB) No. 407/07/HDB/2019 under Section 7 of…
- **2020-11-26 — Tribunal…**: Tribunal vide order passed in IA No. 1041 of 2020 on 26.11.2020 had granted 20 days' time…

## 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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