# In the matter of SPG Global Distribution Private Limited

> NCLT judgment dated 2023-08-07. Citation: TCN-2023-NCLT-02147. The case involves an application (IA No. 938/2020) filed on behalf of the Resolution…

- **Court:** NCLT
- **Order date:** 7 Aug 2023
- **Citation:** TCN-2023-NCLT-02147
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spg-global-distribution-private-limited-f23802e4

## Summary

### Background

The case involves an application (IA No. 938/2020) filed on behalf of the Resolution Professional under Section 33(1)(a) & 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of NCLT Rules, 2016, seeking liquidation of the corporate debtor, SPG Global Distribution Private Limited. The application under Section 9 of IBC was admitted on 06.12.2016, and a moratorium was declared. Mr. Divyanshu Mishra was appointed as the Interim Resolution Professional. Subsequently, Mr. Vijay Kumar was appointed as Resolution Professional on 21.01.2020. Claims were invited from financial and operational creditors, with a total of Rs.94,85,279.34/- claimed by one financial creditor and Rs.42,957,880/- by two operational creditors. The COC members decided to file

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## Facts

SPG Global Distribution Private Limited is undergoing Corporate Insolvency Resolution Process (CIRP). An application under Section 9 of IBC was admitted on 06.12.2016, leading to a moratorium. Mr. Divyanshu Mishra was initially appointed as the Interim Resolution Professional, followed by Mr. Vijay Kumar as the Resolution Professional. Claims of Rs.94,85,279.34/- from one financial creditor and Rs.42,957,880/- from two operational creditors were admitted. The COC decided to file a liquidation application. Ex-Directors of the Corporate Debtor stated that Mr. Ramesh Singh Rawat was in possession of the first floor of the property from 31.05.2018 against an agreement for sale dated 31.03.2018, leading to a dispute and a criminal case. A one-time settlement (OTS) proposal

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, SPG Global Distribution Private …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The court considered that the Resolution Professional was not in possession of the

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** In this case, the CoC approved the liquidation application with a 100% voting

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Abhimanyu J…
- **Respondents:** SPG Global…
- **Advocates:** Nishi Cha…; G.S. S…

## Timeline

- **2016-12-06 — Admission of Section 9…**: The application under Section 9 of IBC was…
- **2020-01-21 — Appointment of…**: Mr. Vijay Kumar was appointed…

## 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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