# In the matter of Mithila Cars Pvt. Ltd. IA-1690 & 2622(MB)2021 in C.P. (IB)-939(MB)2020

> NCLT judgment dated 2022-04-18. Citation: TCN-2022-NCLT-03249. The case pertains to an application seeking liquidation of the Corporate Debtor, Mithila Cars…

- **Court:** NCLT
- **Order date:** 18 Apr 2022
- **Citation:** TCN-2022-NCLT-03249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mithila-cars-pvt-ltd-ia-1690-2622mb2021-in-cp-ib-939mb2020-2661ce1c

## Summary

### Background

The case pertains to an application seeking liquidation of the Corporate Debtor, Mithila Cars Pvt Ltd. The CIRP was admitted on 2021-04-30. Following the admission, a public announcement was made by the IRP on 2021-05-06. The CoC was constituted, and its constitution was certified. The first CoC meeting occurred on 2021-06-04, where the IRP was confirmed as RP. The CoC appointed a Transaction Auditor and two registered valuers to determine fair value and liquidation value. Form-G was published on 2021-07-08, inviting Expression of Interest. The CoC convened its 4th meeting on 2021-09-09, where the provisional and final lists of PRAs were discussed. Only one eligible PRA, M/S Kundan Care Private Limited, was identified, who sought an extension for submitting a

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## Facts

The Corporate Debtor, Mithila Cars Pvt Ltd, underwent Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated, and an Interim Resolution Professional (IRP) was appointed, who then made a public announcement. A Committee of Creditors (CoC) was constituted. The first CoC meeting confirmed the IRP as the Resolution Professional (RP). The CoC appointed a Transaction Auditor and two registered valuers. An invitation for Expression of Interest (EOI) was published. The 4th CoC meeting discussed the list of Prospective Resolution Applicants (PRAs), with only one eligible PRA, M/S Kundan Care Private Limited, seeking an extension to submit a resolution plan, which was denied by the CoC. The CoC then decided to initiate liquidation, resolving to liquidate the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The court noted that no resolution plan was submitted before the Adjudicating Authority

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**Interpretation:** Section 33 provides a mechanism for liquidation when the CIRP fails to produce

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**Application:** Since no resolution plan was submitted, and the CoC voted in favor of

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## Parties

- **Judges:** ANURADHA SANJAY…; SUCHITRAKAN…
- **Appellants:** ABHYUDAYA…
- **Respondents:** Mithila Cars Pvt.…

## Timeline

- **2021-04-30 — Admission o…**: Order of admission of CIRP was…
- **2021-05-06 — Public Announcement by…**: Public announcement was made by…

## 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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