# In the matter of Phantom Resources Private Limited

> NCLT judgment dated 2023-11-29. Citation: TCN-2023-NCLT-00549. 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-00549
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/phantom-resources-private-limited-dbe12629

## 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 the Corporate Debtor, Phantom Resources Private Limited, seeking initiation of liquidation process. The Corporate Debtor was undergoing Corporate Insolvency Resolution Process (CIRP) since 15.07.2022. The Committee of Creditors (CoC) initially consisted of only one Operational Creditor, Nova Cosmetics Private Limited. Later, another Operational Creditor, Manipal Utility Packaging Solutions Private Limited, joined the CoC. The suspended directors informed the RP that the Corporate Debtor was not engaged in business activities post Covid-19 and had no prospect of revival due to severe financial crisis and expired stock. The CoC

…

## Facts

Phantom Resources Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) since 15.07.2022. The Resolution Professional (RP), Ajay Ganesh Marathe, filed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation. 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 due to severe financial crisis and expired stock. The CoC, in its third meeting on 05.11.2022,

…

## Issues and analysis

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

**Ratio:** The decision to liquidate a corporate debtor rests on the commercial wisdom of the

…

**Reasoning:** The CoC, with 100% voting, approved the liquidation of the Corporate Debtor due to its

…

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

…

**Application:** The CoC's decision to liquidate Phantom Resources Private Limited was based on

…

## 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 Announcement in accordance with Sections 13 and 15 of the Code and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

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/phantom-resources-private-limited-dbe12629