# In the matter of R S Motors Private Limited IA No. 325-JPR-2020 & IA No. 433-JPR-2021 in CP No. (IB)-156-9-JPR-2019

> NCLT judgment dated 2022-08-31. Citation: TCN-2022-NCLT-01205. The case involves an application (IA No. 325/JPR/2020) filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 31 Aug 2022
- **Citation:** TCN-2022-NCLT-01205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/r-s-motors-private-limited-ia-no-325-jpr-2020-ia-no-433-jpr-2021-in-cp-no-ib-156-a0533ecb

## Summary

### Background

The case involves an application (IA No. 325/JPR/2020) filed by the Resolution Professional (RP) of R.S. Motors Private Limited, the Corporate Debtor, under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order for liquidation against the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated based on an application filed by Toyota Kirloskar Motor Pvt. Ltd. (Operational Creditor) under Section 9 of the Code. The Adjudicating Authority admitted the application on 30.09.2019 and appointed Mr. Sudhir Bhansali as the Interim Resolution Professional (IRP).

## Facts

Toyota Kirloskar Motor Pvt. Ltd. initiated CIRP against R.S. Motors Private Limited under Section 9 of the IBC. The Adjudicating Authority admitted the application on 2019-09-30 and appointed Mr. Sudhir Bhansali as IRP. The CoC was formed, and in its first meeting on 2019-10-30, a proposal to replace the IRP was made but not voted on. Subsequent meetings were held, and Mr. Rajeev Sharma replaced Mr. Sudhir Bhansali as RP with 100% majority approval confirmed on 2019-11-15. An application (IA No. 129/JPR/2020) was filed seeking an extension of the CIRP period, which was granted until 2020-07-31, excluding the lockdown period. The application for liquidation was filed on 2020-10-12. The 11th CoC meeting on 2020-09-28 saw a resolution for liquidation supported by Reliance

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, R.S. Motors Private Limited, …

**Ratio:** Section 33(1) of the IBC, 2016, provides that where the Adjudicating Authority does not

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**Reasoning:** The Adjudicating Authority considered the fact that the CoC had approved the resolution

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**Interpretation:** Section 33(1) mandates liquidation if no resolution plan is approved or

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**Application:** Since no resolution plan was approved and the CoC recommended liquidation, the

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** TOYOTA. KIRLOSKAR…
- **Respondents:** R.S. Motors…

## Timeline

- **2019-09-30 — CIRP Init…**: Adjudicating Authority admitted the application filed by Toyota Kirloskar Motor Pvt. Ltd.…
- **2019-09-30 — Appointment…**: Mr. Sudhir Bhansali was appointed as the…

## Legal provisions

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

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