# In the matter of MPL Automobiles Agency Private Limited

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00649. The case involves the liquidation of MPL Automobiles Agency Private Limited. CIRP was initiated…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mpl-automobiles-agency-private-limited-9b012786

## Summary

### Background

The case involves the liquidation of MPL Automobiles Agency Private Limited. CIRP was initiated on 24.10.2019. The liquidation was ordered on 07.01.2022 as no resolution plan was approved. C.Prabakaran was appointed as the liquidator. The liquidator made a public announcement on 11.01.2022 inviting claims. The corporate debtor had no operations at the time of commencement of liquidation, no employees, and no realizable assets as per the audited financial statement for FY 2017-18. The financial creditors informed the liquidator that they were unwilling to participate in the liquidation process. The liquidator appointed two registered valuers, but they could not commence valuation work due to the non-availability of physical/realizable assets and required information.

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## Facts

MPL Automobiles Agency Private Limited underwent CIRP initiated on 24.10.2019. Liquidation was ordered on 07.01.2022 due to the absence of a resolution plan. C.Prabakaran was appointed as the liquidator and issued a public announcement on 11.01.2022. The corporate debtor had no operations, employees, or realizable assets as of FY 2017-18. Financial creditors, including Axis Bank and ICICI Bank, were unwilling to participate in the liquidation. Two registered valuers were appointed but could not proceed due to the lack of assets and funds. The suspended directors were untraceable. The liquidator filed IA/828/2022 seeking dissolution and payment of fees, which was dismissed on 10.10.2022. The liquidator then filed IA(IBC)/1287(CHE)/2022 for dissolution and

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## Issues and analysis

### Issue 1: Whether the Tribunal should order the dissolution of the Corporate Debtor, MPL Automobiles Agency …

**Ratio:** Section 54 of the IBC, 2016, states that where the assets of the corporate debtor have

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**Reasoning:** The Tribunal found that the Corporate Debtor had been completely liquidated based on the

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**Interpretation:** Section 54 of the IBC, 2016, provides the legal basis for the dissolution of a

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**Application:** The Tribunal applied Section 54 of the IBC, 2016, to the facts of the case,

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** C. Praba…
- **Respondents:** MPL Automobiles…; AXIS…

## Timeline

- **2019-10-24 — CIRP Init…**: CIRP initiated against MPL…
- **2022-01-07 — Liquidation…**: Liquidation of the Corporate Debtor was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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