# In the matter of M.P. Enterprises & Associates Ltd.

> NCLT judgment dated 2024-02-21. Citation: TCN-2024-NCLT-02509. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Feb 2024
- **Citation:** TCN-2024-NCLT-02509
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mp-enterprises-associates-ltd-55557d03

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking a liquidation order and appointment of a liquidator for M.P. Enterprises & Associates Limited, the Corporate Debtor. The application was based on a resolution passed by the Committee of Creditors (CoC) during its 4th and 5th meetings. The Corporate Insolvency Resolution Process (CIRP) was initiated on 20.04.2023 after the petition was admitted. The Resolution Professional (RP) issued a public announcement inviting claims, and several CoC meetings were held to explore resolution plans. However, the resolution applicants showed unwillingness to submit resolution plans, and the CoC ultimately decided to liquidate the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M.P. Enterprises & Associates Limited on 20.04.2023. Mr. Rajeev Mannadiar was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP issued a public announcement inviting claims from creditors. Several Committee of Creditors (CoC) meetings were held. In the second CoC meeting, a resolution was passed to publish Form G, inviting Expression of Interest (EoI) from prospective resolution applicants. Seven EOIs were received, but only two applicants were found eligible. In the fourth CoC meeting, both shortlisted resolution applicants showed unwillingness to submit resolution plans. The operations of the Corporate Debtor had been closed for over

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## Issues and analysis

### Issue 1: Whether the application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, for …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The CoC, after considering the lack of viable resolution plans and the financial

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** The CoC's decision to liquidate the Corporate Debtor, based on the lack of

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## Parties

- **Judges:** Charanjeet Singh…; Smt Lakshmi…
- **Appellants:** Rajeev Mannadiar,…
- **Respondents:** M.P. Enterprises…; The Fedral Bank…

## Timeline

- **2023-04-20 — CIRP Init…**: The Petition (CP(IB)64(MB)/2023) was admitted by the Tribunal, and the Corporate…
- **2023-05-03 — Public Annou…**: The Applicant issued a Public Announcement in Form 'A' inviting claims in Free Press…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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