# In the matter of PALAVI DEALERS PRIVATE LIMITED

> NCLT judgment dated 2024-11-27. Citation: TCN-2024-NCLT-00154. The case involves an application for the initiation of liquidation proceedings against the…

- **Court:** NCLT
- **Order date:** 27 Nov 2024
- **Citation:** TCN-2024-NCLT-00154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/palavi-dealers-private-limited-2c28fb2d

## Summary

### Background

The case involves an application for the initiation of liquidation proceedings against the Corporate Debtor, Palavi Dealers Private Limited, after the Corporate Insolvency Resolution Process (CIRP) failed to yield a resolution plan.

## Facts

The Corporate Insolvency Resolution Process ( CIRP ) was initiated against Palavi Dealers Private Limited (Corporate Debtor) following an order dated January 11, 2024, in Company Petition (IB)-3236(MB)/2019, filed under Section 9 of the IBC, 2016, by V. Singhi & Associates, the Operational Creditor. Mr. Uttam Tekriwal was initially appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC) in its first meeting on February 15, 2024. Upon receiving the admission order, the RP made a public announcement in Form A on January 18, 2024, inviting claims from creditors. Initially, only one claim was received from the Operational Creditor, V. Singhi & Associates, leading to the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Palavi Dealers Private Limited, should be liquidated due to the …

**Ratio:** When no resolution plan is received during the CIRP, and the Committee of Creditors

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**Reasoning:** The Committee of Creditors (CoC) resolved with 100% voting to initiate liquidation after

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**Interpretation:** The court interpreted Section 33 of the IBC, 2016, to allow for the initiation

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**Application:** Given that no resolution plan was submitted for Palavi Dealers Private Limited

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## Parties

- **Judges:** SHRI. SANJI…; SHRI. KISHORE…
- **Appellants:** V. Singhi &…
- **Respondents:** Palavi Dealers…
- **Advocates:** For the Applicant:…; Pratik…; +1 more

## Timeline

- **January 11, 2024 — CIRP Admissio…**: The Tribunal admitted the Company Petition (IB)-3236(MB)/2019, commencing the Corporate…
- **January 11, 2024 — IRP Appoi…**: Mr. Uttam Tekriwal was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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