# In the matter of MTC ECom Pvt. Ltd. IA-923-2021 in CP(IB)-809(MB)-2020

> NCLT judgment dated 2022-07-26. Citation: TCN-2022-NCLT-01573. The case involves an application (IA-923/2021) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 26 Jul 2022
- **Citation:** TCN-2022-NCLT-01573
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mtc-ecom-pvt-ltd-ia-923-2021-in-cpib-809mb-2020-5a398490

## Summary

### Background

The case involves an application (IA-923/2021) filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, MTC E-Com Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition filed by Nailesh Dresswala, the Operational Creditor, under Section 9 of the Code. The applicant was appointed as Interim Resolution Professional and later as Resolution Professional. Despite efforts to find resolution applicants, none met the eligibility criteria, leading the Committee of Creditors (CoC) to resolve to initiate liquidation proceedings with 100% voting.

## Facts

On 17.08.2020, the Tribunal admitted a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) filed by Nailesh Dresswala, the Operational Creditor, initiating the Corporate Insolvency Resolution Process (CIRP) against MTC E-Com Private Limited, the Corporate Debtor. The applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP appointed a Statutory Auditor, M/s. Ajay Shobha & Company, on 23.10.2020, to prepare financial statements. Two registered valuers, Mr. Vinay Totla and Ms. Asha Ghosal, were appointed to determine the fair value and liquidation value of the Corporate Debtor. On 31.10.2020, Form G was issued to invite expressions of interest from prospective resolution applicants. An

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## Issues and analysis

### Issue 1: Whether the application (IA-923/2021) filed by the Resolution Professional seeking liquidation of …

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

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**Reasoning:** The court considered the fact that the CIRP had failed to produce a successful resolution

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when resolution efforts

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**Application:** The court applied Section 33(2) to the facts of the case, noting the absence of

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## Parties

- **Judges:** Manoj Kumar…; KISHORE VEMULAPALL…
- **Appellants:** Dilip G…
- **Respondents:** MTC E-Com Pvt.…; Nailesh Dre…
- **Advocates:** Aditi T…

## Timeline

- **2020-08-17 — Admission of…**: Tribunal admitted petition under Section 9 of the Code filed by Nailesh Dresswala,…
- **2020-10-23 — Appointment of…**: RP appointed M/s. Ajay Shobha &…

## 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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