# In the matter of Mercator Oil & Gas Ltd. IA. No. 1134 of 2022 in C.P.No.(IB)1400(MB) of 2019

> NCLT judgment dated 2022-11-14. Citation: TCN-2022-NCLT-00462. The case involves an application (I.A. No. 1134/2022) filed by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 14 Nov 2022
- **Citation:** TCN-2022-NCLT-00462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mercator-oil-gas-ltd-ia-no-1134-of-2022-in-cpnoib1400mb-of-2019-314cee67

## Summary

### Background

The case involves an application (I.A. No. 1134/2022) filed by the Resolution Professional, Mr. Adesh Kumar Gupta, seeking liquidation of Mercator Oil & Gas Ltd. (the Corporate Debtor) under Section 33(3) of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC), consisting of Axis Bank, resolved to liquidate the Corporate Debtor. The CoC instructed the Applicant to file a Liquidation Application with the Tribunal. The application was filed after a resolution plan from DEV Land & Housing Pvt Ltd was considered but not approved due to non-compliance with Section 30 and regulations 37, 38, and 39 of the CIRP Regulations. The CoC unanimously decided to opt for liquidation in its 6th meeting.

## Facts

Crab & Taur PTE Ltd. initiated the application for liquidation of Mercator Oil & Gas Ltd. under Section 33(3) of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC), consisting of Axis Bank, resolved to liquidate the Corporate Debtor. Claims were received from two Financial Creditors and one Operational Creditor. A resolution plan from DEV Land & Housing Pvt Ltd was considered but not approved due to non-compliance with Section 30 and regulations 37, 38, and 39 of the CIRP Regulations, specifically the failure to cover 100% of the CIRP cost. The CoC unanimously decided to opt for liquidation in its 6th meeting. The CoC also decided on a liquidation fee of Rs 50,00,000, with Rs 3 lakh per quarter payable for 2 years, and the balance

…

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Mercator Oil & Gas Ltd., under …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the CoC to pass a

…

**Reasoning:** The CoC unanimously decided to liquidate the Corporate Debtor after failing to approve a

…

**Interpretation:** Section 33(3) provides that where the adjudicating authority, before the expiry

…

**Application:** The CoC's decision to liquidate the Corporate Debtor, coupled with the absence

…

## Parties

- **Judges:** H.V. Subb…; SMT ANURADHA…
- **Appellants:** Crab & Taur Pvt…
- **Respondents:** Mercator Oil &…

## Timeline

- **2021-07-21 — Constitution of COC by…**: The IRP constituted the Committee of Creditors (COC) in accordance with Section 21 of the…
- **2021-07-27 — First COC M…**: The Applicant was appointed as the Interim Resolution Professional (IRP) during the first…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(3) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mercator-oil-gas-ltd-ia-no-1134-of-2022-in-cpnoib1400mb-of-2019-314cee67