# In the matter of MTM Trading Pvt. Ltd.

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-02395. The application was filed by the Liquidator, Shri Joby Chacko, under Section 60(5) of the IBC,…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-02395
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mtm-trading-pvt-ltd-06174e1d

## Summary

### Background

The application was filed by the Liquidator, Shri Joby Chacko, under Section 60(5) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016, seeking permission to sell the assets of the Corporate Debtor. The Corporate Debtor's primary asset is an investment of 1,20,000 equity shares of Rs.10 each in Khandepur Investments Pvt. Ltd. The Adjudicating Authority had previously ordered liquidation against the Corporate Debtor on 17.08.2021 and appointed Mr. Joby Chacko as Liquidator. The liquidation period was extended twice, with the last date for completion being 16th August 2023. The Corporate Debtor was not carrying on any business as of the CIRP commencement date and liquidation commencement date, and had no employees. The liquidator attempted to sell the assets of

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## Facts

The Corporate Debtor, M/s. MTM Trading Pvt. Ltd., underwent liquidation as per the order of the Adjudicating Authority dated 17.08.2021, with Mr. Joby Chacko appointed as the Liquidator. The liquidation period was extended twice, with the final completion date set for 16th August 2023. The Corporate Debtor's sole asset is 1,20,000 equity shares of Rs.10 each in Khandepur Investments Pvt. Ltd., constituting 8.75% of the investee company's paid-up share capital. The Liquidator made 13 attempts to sell the asset via e-auction, all of which failed due to lack of bids. A proposal was received from Mr. Kirti Nerlekar for Rs.1,25,00,000/-, which was less than the reserve price of Rs.3,54,00,690/-. The Stakeholders Consultation Committee (SCC) met on 22.04.2023 to discuss the

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## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to sell the asset of the Corporate Debtor by reducing …

**Ratio:** The court has the power to oversee the liquidation process and ensure that the assets of

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**Reasoning:** The court considered the repeated failed attempts to sell the asset through e-auctions,

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**Interpretation:** Section 60(5) of the IBC, 2016, grants the NCLT jurisdiction over matters

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**Application:** The court applied its power under Section 60(5) of the IBC, 2016, and Rule 11

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Joby Ch…
- **Respondents:** MTM Trading Pvt.…
- **Advocates:** Saji P…

## Timeline

- **2021-08-17 — Liquidation…**: Adjudicating Authority ordered liquidation against the Corporate Debtor and appointed Mr.…
- **2023-08-16 — Extended Liquidation…**: Last date for completion of liquidation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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