# In the matter of Micro Stock Holdings Pvt. Ltd.

> NCLT judgment dated 2024-03-04. Citation: TCN-2024-NCLT-02234. The case pertains to the corporate insolvency resolution process (CIRP) of Micro Stock Holdings…

- **Court:** NCLT
- **Order date:** 4 Mar 2024
- **Citation:** TCN-2024-NCLT-02234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/micro-stock-holdings-pvt-ltd-e7c93e20

## Summary

### Background

The case pertains to the corporate insolvency resolution process (CIRP) of Micro Stock Holdings Pvt Ltd. CFM Asset Reconstruction Pvt Ltd, the applicant, sought liquidation of the corporate debtor after the resolution plan submitted by M/s Ocean Capital Market Limited was found non-compliant with the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. Despite multiple opportunities, the resolution applicant failed to rectify the shortcomings in the resolution plan. The Committee of Creditors (CoC) decided to liquidate the corporate debtor, and the extended CIRP period expired on January 25, 2024, without any application for extension being filed.

## Facts

The corporate insolvency resolution process (CIRP) was initiated against Micro Stock Holdings Pvt Ltd. CFM Asset Reconstruction Pvt Ltd is the applicant in this case. M/s Ocean Capital Market Limited submitted a resolution plan, but it was found to be non-compliant with the Insolvency and Bankruptcy Code (IBC), 2016. The resolution professional (RP) informed the Committee of Creditors (CoC) about the non-compliance. The RP requested the resolution applicant to submit an addendum to the plan, but it was not submitted despite reminders. The CoC gave the resolution applicant multiple opportunities to rectify the shortcomings. The resolution applicant withdrew the resolution plan in the 14th CoC meeting held on 22.12.2023. The CIRP period expired on 25.01.2024, and no

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can order the liquidation of the Corporate Debtor under Section …

**Ratio:** Section 33(1) of the IBC, 2016, stipulates that the Adjudicating Authority may pass an

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**Reasoning:** The court reasoned that the resolution plan submitted by M/s Ocean Capital Market Limited

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**Interpretation:** Section 33(1) of the IBC, 2016, is interpreted to mean that liquidation is a

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**Application:** In this case, the resolution plan was non-compliant, and the CIRP period

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** CFM Asset…
- **Respondents:** Micro Stock…

## Timeline

- **2023-10-17 — 12th CoC M…**: The Applicant (RP) informed the members of CoC that the resolution plan submitted by M/s…
- **2023-10-18 — Applicant asks PRA to…**: The Applicant vide e-mail dated 18.10.2023 asked the PRA to submit addendum plan as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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