# 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-03242. 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-03242
- **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-939mb2020-8ea8c03c

## 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. The applicant published Form-G for invitation of Expression of Interest on 2021-07-08. 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

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## Facts

The Corporate Debtor, Mithila Cars Pvt Ltd, underwent CIRP, which was admitted on 2021-04-30. A public announcement was made on 2021-05-06. The CoC was formed, and its first meeting was held on 2021-06-04, confirming the IRP as RP. The CoC appointed a Transaction Auditor and valuers. Form-G was published on 2021-07-08. The 4th CoC meeting on 2021-09-09 revealed only one eligible PRA, M/S Kundan Care Private Limited, who requested an extension until 2021-09-20 for submitting a resolution plan, which the CoC denied. The CoC then decided to initiate liquidation, resolving to do so on 2021-10-22. The financial creditors include ASREC (India) Ltd. with a claim and admitted amount of INR 39,04,92,641 and State Bank of India with a claim and admitted amount of INR

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be approved given the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court observed that no resolution plan had been submitted before it. The CoC had

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**Interpretation:** Section 33(1) provides a clear legal basis for initiating liquidation when the

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**Application:** Since no resolution plan was submitted, the court applied Section 33(1) and

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## Parties

- **Judges:** ANURADHA SANJAY…; SUCHITRA KANUPARTH…; +1 more
- **Appellants:** ABHYUDAYA…
- **Respondents:** Mithila Cars Pvt.…

## Timeline

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

## 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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