# In the matter of Padam Motors Pvt. Ltd.

> NCLT judgment dated 2024-04-01. Citation: TCN-2024-NCLT-01904. The case pertains to an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Apr 2024
- **Citation:** TCN-2024-NCLT-01904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/padam-motors-pvt-ltd-a308d4ee

## Summary

### Background

The case pertains to an application filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the initiation of a liquidation process for the corporate debtor, Padam Motors Pvt. Ltd. The Committee of Creditors (CoC) resolved on 2024-01-17 to liquidate the corporate debtor. The application was filed by the Resolution Professional (RP).

## Facts

Sapna Cars Pvt. Ltd. initiated corporate insolvency resolution process (CIRP) against Padam Motors Pvt. Ltd. under Section 7 of the IBC, 2016. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor. An application was filed under Section 33(2) of the IBC, 2016, seeking the initiation of the liquidation process. The CoC in its meeting held on 2024-01-17 decided to liquidate the Corporate Debtor. The Resolution Professional (RP) filed the application. The Insolvency and Bankruptcy Board of India (IBBI) provided a list of liquidators, and Mr. Somnath Gupta was appointed as the liquidator. The NCLT considered the application and the resolution passed by the CoC and decided to liquidate the Corporate Debtor with immediate effect.

## Issues and analysis

### Issue 1: Whether the application under Section 33(2) of the I&B Code, 2016, for initiation of the …

**Ratio:** Section 33(2) of the I&B Code, 2016, allows the Adjudicating Authority to pass an

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**Reasoning:** The CoC has resolved to liquidate the Corporate Debtor, and the application has been

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a Corporate Debtor

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**Application:** The CoC's decision to liquidate the Corporate Debtor, coupled with the

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## Parties

- **Judges:** L. N. G…; Harnam Singh…
- **Respondents:** Padam Motors Pvt.…

## Timeline

- **2024-01-17 — CoC Meet…**: The CoC in its meeting decided to liquidate…
- **2024-04-01 — Order Del…**: Order delivered by NCLT to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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