# In the matter of Stan Autos Private Limited IA No. 1375,,3868,4545,4843,5730,6225(PB)-2022 & IA No.1005(PB)-2023 in CP (IB) No.52(PB)-2021

> NCLT judgment dated 2023-04-11. Citation: TCN-2023-NCLT-03867. The Resolution Professional (RP) filed an application seeking liquidation of the Corporate…

- **Court:** NCLT
- **Order date:** 11 Apr 2023
- **Citation:** TCN-2023-NCLT-03867
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stan-autos-private-limited-ia-no-137538684545484357306225pb-2022-ia-no1005pb-202-8890badb

## Summary

### Background

The Resolution Professional (RP) filed an application seeking liquidation of the Corporate Debtor, Stan Autos Private Limited, as no resolution plan was received. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on 2022-02-18, following a petition by the Financial Creditor, Mahindra and Mahindra Financial Services, under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Rajesh Kumar Mittal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. Vijay Kumar Saxena as RP on 2022-06-06.

## Facts

Mahindra and Mahindra Financial Services filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Stan Autos Private Limited on 2022-02-18. Rajesh Kumar Mittal was initially appointed as the Interim Resolution Professional (IRP), later replaced by Vijay Kumar Saxena as the RP on 2022-06-06. The Committee of Creditors (CoC) was constituted on 2022-10-27, with State Bank of India holding the largest voting share (50.69%). Three Expressions of Interest (EOIs) were received but deemed unfeasible by the CoC. In a meeting on 2023-01-18, the CoC, with 83.81% voting share, recommended liquidation and the appointment of Vijay Kishore Saxena as the liquidator. The RP then

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Stan Autos Private Limited, should …

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

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**Reasoning:** The Committee of Creditors (CoC) determined that no feasible resolution plan was

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when resolution efforts

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**Application:** In this case, the CoC's decision, supported by the absence of a feasible

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** Stan Autos…

## Timeline

- **2022-02-18 — Initiation…**: The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP)…
- **2022-06-06 — Appointment…**: Mr. Vijay Kumar Saxena was appointed as the Resolution Professional (RP), replacing Mr.…

## 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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