# In the matter of Showlin Network Marketing Pvt.. Ltd.

> NCLT judgment dated 2023-07-28. Citation: TCN-2023-NCLT-02293. The Interlocutory Application IA 1450/2022 was filed by the Resolution Professional of the…

- **Court:** NCLT
- **Order date:** 28 Jul 2023
- **Citation:** TCN-2023-NCLT-02293
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/showlin-network-marketing-pvt-ltd-a2a588da

## Summary

### Background

The Interlocutory Application IA 1450/2022 was filed by the Resolution Professional of the Corporate Debtor, seeking liquidation under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. A Corporate Insolvency Resolution Process (CIRP) had been initiated against the Corporate Debtor vide order dated 15.07.2019, and the Applicant was appointed as the Interim Resolution Professional. The Applicant issued a public announcement inviting claims from creditors. A Committee of Creditors (CoC) was formed, comprising one Financial Creditor with 100% voting rights. The CoC was informed that the Corporate Debtor had ceased operations. The Applicant was continued as the Resolution Professional and authorized to appoint registered valuers. The Applicant appointed valuers,

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Showlin Network Marketing Pvt Ltd on 2019-07-15. The Applicant was appointed as the Interim Resolution Professional. The Applicant issued a public announcement to invite claims from creditors and formed a Committee of Creditors (CoC) consisting of one Financial Creditor with 100% voting rights. A CoC meeting was held on 2020-03-06, where the Applicant informed that the Corporate Debtor had ceased its operations for the past few years. The Applicant was continued as the Resolution Professional and authorized to appoint registered valuers. Two registered valuers, Mr. Modilal Panecha and Mr. Mukesh Jain, were appointed. The average fair market value and average liquidation value of the Corporate

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## Issues and analysis

### Issue 1: Whether the Interlocutory Application seeking liquidation of the Corporate Debtor is in consonance …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The court considered the submissions of the Applicant and the averments made in the

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**Interpretation:** The court interpreted Section 33(1) and 34 of the IBC to mean that if the CoC

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**Application:** The CoC had approved the liquidation of the Corporate Debtor. The court found

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## Parties

- **Judges:** Anu Jagmoha…; H.V. Subb…
- **Appellants:** Macro Leafin Pvt.…
- **Respondents:** Showlin Network…

## Timeline

- **2019-07-15 — CIRP Ord…**: Corporate Insolvency Resolution Process was…
- **2020-03-06 — CoC Meet…**: CoC meeting was held wherein the Applicant informed that the Corporate Debtor has ceased…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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