# In the matter of Neel Motors LLP I.A. No. 233 of 2022 in C.P. No. 4431-IB-2019

> NCLT judgment dated 2022-04-01. Citation: TCN-2022-NCLT-03439. The case involves an application filed by the Resolution Professional seeking liquidation of…

- **Court:** NCLT
- **Order date:** 1 Apr 2022
- **Citation:** TCN-2022-NCLT-03439
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neel-motors-llp-ia-no-233-of-2022-in-cp-no-4431-ib-2019-6ebdea78

## Summary

### Background

The case involves an application filed by the Resolution Professional seeking liquidation of the Corporate Debtor, Neel Motors LLP, due to the absence of a resolution plan. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) against Neel Motors LLP following a petition filed by the Financial Creditor, PPG Asian Paints Private Limited, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Mukesh Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Despite efforts, no resolution plan was received, and the Committee of Creditors (CoC) determined that continuing with the CIRP was not feasible due to the absence of fixed assets and remote prospects of

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## Facts

PPG Asian Paints Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Neel Motors LLP, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). Mr. Mukesh Kumar Gupta was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). An advertisement inviting Expression of Interest (EoI) was published. The Committee of Creditors (CoC) decided to appoint a valuer and two registered valuers were appointed. The CoC determined that continuing with the CIRP was not feasible due to the absence of fixed assets and the remote prospects of a resolution. The CoC, in its 6th meeting held on 27.12.2021, passed a resolution for liquidation with 100% voting rights. The RP

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Neel Motors LLP, should be allowed …

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

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**Reasoning:** The court reasoned that the CoC had determined that continuing with the CIRP was not

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if a resolution plan is not

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**Application:** In this case, the absence of a resolution plan and the CoC's decision to

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** PPG Asian Paints…
- **Respondents:** Neel Moto…

## Timeline

- **2021-08-04 — Order for CIRP…**: The Adjudicating Authority directed the initiation of the Corporate Insolvency Resolution…
- **2021-09-03 — Appointment of…**: In the 1st Committee of Creditors (CoC) meeting, Mr. Mukesh Kumar Gupta was resolved to…

## 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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