# In the matter of Temple Leasing and Finance Ltd. IA-2654-2023 in (IB)-637(PB)-2020

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02898. The application IA-2654/2023 was filed after the rejection of a previous application,…

- **Court:** NCLT
- **Order date:** 16 Jun 2023
- **Citation:** TCN-2023-NCLT-02898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/temple-leasing-and-finance-ltd-ia-2654-2023-in-ib-637pb-2020-43b9130a

## Summary

### Background

The application IA-2654/2023 was filed after the rejection of a previous application, IA-5874/2021, due to a lack of service of notice to the Suspended Board of Directors. The applicant then submitted the current application, including proof of service of notice to the Suspended Board of Directors. The CoC had previously passed a resolution on 2021-12-01 to liquidate the Corporate Debtor with 100% voting share.

## Facts

M/s. Guadian Finance Pvt. Ltd. filed an application (IA-2654/2023) seeking liquidation of M/s. Temple Leasing & Finance Ltd. The previous application (IA-5874/2021) was rejected due to lack of service of notice to the Suspended Board of Directors. The applicant then submitted the current application, including proof of service of notice to the Suspended Board of Directors. The Committee of Creditors (CoC) of Temple Leasing and Finance Limited had unanimously resolved on 2021-12-01 to liquidate the Corporate Debtor with 100% voting share, as no resolution plan was approved. The CoC's decision was based on the rejection of a previous resolution plan submitted by Mekaster Finlease Limited. The resolution professional is authorized to file an application under Section

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is required to pass an order for liquidation of the Corporate …

**Ratio:** Section 33(2) of the IBC, 2016, mandates that the Adjudicating Authority shall pass an

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**Reasoning:** The court observed that the CoC had unanimously resolved to liquidate the Corporate

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**Interpretation:** Section 33(2) of the IBC, 2016, is interpreted to mean that the Adjudicating

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**Application:** In this case, the CoC had unanimously resolved to liquidate the Corporate

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. L. N.…
- **Appellants:** M/s. Guadian…
- **Respondents:** M/s. Temple…

## Timeline

- **2021-12-01 — CoC Meet…**: The Committee of Creditors (CoC) of Temple Leasing and Finance Limited passed a…
- **2022-12-19 — Rejection of IA-5874/202…**: The previous application IA-5874/2021 was rejected due to a lack of service of notice to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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