# In the matter of Phantom Resources Private Limited

> NCLT judgment dated 2023-11-29. Citation: TCN-2023-NCLT-00529. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 Nov 2023
- **Citation:** TCN-2023-NCLT-00529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/phantom-resources-private-limited-6f659155

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) of Phantom Resources Private Limited, the Corporate Debtor, seeking the initiation of liquidation proceedings. The Corporate Debtor was undergoing Corporate Insolvency Resolution Process (CIRP) since 2022-07-15. The Committee of Creditors (CoC) initially consisted of only one Operational Creditor, Nova Cosmetics Private Limited, but later included Manipal Utility Packaging Solutions Private Limited. The CoC resolved to liquidate the Corporate Debtor due to its financial crisis and lack of business activity.

## Facts

Phantom Resources Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) since 2022-07-15. The Resolution Professional (RP), also the applicant, filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor. Initially, the Committee of Creditors (CoC) consisted of only one Operational Creditor, Nova Cosmetics Private Limited, with a claim of Rs. 47,22,294. Later, Manipal Utility Packaging Solutions Private Limited also became a member of the CoC. The suspended directors of the Corporate Debtor informed the RP that the company was not engaged in business activities post Covid-19 and had no prospect of revival. The CoC, in its third meeting on 2022-11-05, resolved to liquidate the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Phantom Resources Private Limited, …

**Ratio:** The ratio is based on the commercial wisdom of the Committee of Creditors (CoC) and the

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**Reasoning:** The court reasoned that the Corporate Debtor was not operational, faced a severe

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**Interpretation:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the

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**Application:** In this case, the CoC, consisting of the operational creditors, unanimously

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Ajay Ganesh…
- **Respondents:** Phantom Resources…

## Timeline

- **2022-07-15 — CIRP Comm…**: Corporate Insolvency Resolution Process (CIRP) commenced for Phantom Resources Private…
- **2022-08-22 — Public Annou…**: IRP issued Public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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