# In the matter of MK Furncraft Pvt. Ltd. IA-5967-ND-2022 in Company Petition No. (IB)-3455 (ND) 2019

> NCLT judgment dated 2023-01-30. Citation: TCN-2023-NCLT-04859. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s…

- **Court:** NCLT
- **Order date:** 30 Jan 2023
- **Citation:** TCN-2023-NCLT-04859
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mk-furncraft-pvt-ltd-ia-5967-nd-2022-in-company-petition-no-ib-3455-nd-2019-409745d1

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s MK Furncraft Pvt. Ltd. The Adjudicating Authority initiated CIRP on 16.02.2022. The Operational Creditor did not propose an Interim Resolution Professional (IRP), so the Adjudicating Authority appointed Mr. Hans Raj Bhogra as the IRP. A public announcement in Form-A was made on 17.02.2022. The Committee of Creditors (CoC) confirmed the appointment of Mr. Bhogra as the Resolution Professional (RP) in its meeting held on 15.03.2022. Despite efforts to invite resolution plans, only one Expression of Interest (EOI) was received, and no resolution plan was submitted. The CIRP period was extended by 90 days. Ultimately, the CoC resolved to liquidate the Corporate Debtor unanimously

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## Facts

M/s Woodpeckers India Pvt. Ltd. is the Operational Creditor. M/s MK Furncraft Pvt. Ltd. is the Corporate Debtor against whom CIRP was initiated. The CIRP was initiated on 16.02.2022. Mr. Hans Raj Bhogra was appointed as the IRP and later confirmed as the RP. A public announcement was made on 17.02.2022. The CoC confirmed the RP's appointment on 15.03.2022. An Expression of Interest (EOI) was invited, and only one EOI was received from M/s Sunrise Industries. No resolution plan was received by 09.07.2022. The CIRP period was extended by 90 days via an order dated 01.09.2022. The CoC resolved to liquidate the Corporate Debtor on 07.11.2022, as the CIRP was to end on 13.11.2022. Registered Valuers were appointed on 02.09.2019, but valuation could not be conducted due to a

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s MK Furncraft Pvt. Ltd., should …

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

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received despite efforts to

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**Interpretation:** Section 33(1) provides a clear pathway for liquidation when CIRP fails to

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**Application:** In this case, the absence of a resolution plan and the CoC's unanimous decision

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## Parties

- **Judges:** SH. BACHU VENKAT…; BINOD KUMAR…
- **Respondents:** M/s MK Furncraft…

## Timeline

- **2022-02-16 — CIRP Init…**: Adjudicating Authority initiated…
- **2022-02-17 — Public Annou…**: Public announcement in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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