# In the matter of National Auto Wheels Private Limited

> NCLT judgment dated 2024-05-16. Citation: TCN-2024-NCLT-01323. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 16 May 2024
- **Citation:** TCN-2024-NCLT-01323
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/national-auto-wheels-private-limited-ab171b81

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of National Auto Wheels Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by the Financial Creditor, Mahindra & Mahindra Financial Services Limited, under Section 7 of the IBC. Rajesh Kumar Mittal was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Despite efforts to find a resolution plan, including inviting prospective resolution applicants and extending the CIRP period, no viable plan was received. The Committee of Creditors (CoC) ultimately resolved to liquidate the Corporate Debtor.

## Facts

Mahindra & Mahindra Financial Services Limited, the Financial Creditor, filed a petition under Section 7 of the IBC, 2016, against National Auto Wheels Private Limited, the Corporate Debtor. The petition was admitted, and CIRP was initiated. Rajesh Kumar Mittal was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The RP made public announcements to invite claims from creditors. Several CoC meetings were held to discuss the resolution process. An attempt was made to invite Prospective Resolution Applicants (PRAs) by issuing Form G. One Eol was received from Ocean Capital Market Ltd. The CIRP period was extended by 90 days. However, no resolution plan was received from the PRA. The CoC then resolved to liquidate

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, National Auto Wheels Private Limited, should be liquidated under …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

…

**Reasoning:** The Tribunal considered the fact that despite efforts to find a resolution plan,

…

**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CIRP does not yield a

…

**Application:** In this case, the CIRP failed to produce a resolution plan, and the CoC

…

## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Rajesh Kumar…
- **Respondents:** National Auto…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition bearing No.: C.P.(IB)-105(MB)/2021 filed under Section 7 of the IBC,…
- **2022-12-13 — CIRP Init…**: Tribunal order admitting the petition and initiating Corporate Insolvency Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/national-auto-wheels-private-limited-ab171b81