Ultratech Cement Limited Vs Jaatvedas Construction Company Private Limited (NCLT Mumbai)
NCLT Mumbai held that initiation of liquidation of Corporate Debtor in terms of section 33(2) of the Insolvency and Bankruptcy Code admitted as members of CoC having 66.29% voting share approved resolution to initiate liquidation.
Facts- This Interlocutory Application was filed on 12.06.2025 by Mr. Kailash T. Shah, the Resolution Professional (RP) of Jaatvedas Construction Company Private Limited, (Corporate Debtor) u/s. 33 r.w.s. 60(5) of the Insolvency and Bankruptcy Code, 2016, and Rule 11 of the National Company Law Tribunal Rules, 2016 seeking order directing initiation of Liquidation Process of the Corporate Debtor in accordance with Chapter III of Part II of the Code along with appointment of Incorp Restructuring LLP, an Insolvency Professional Entity, as the Liquidator of the Corporate Debtor.
The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) vide order dated 16.09.2022 (Admission Order) passed by this Tribunal, filed u/s. 9 of the Code by Ultratech Cement Limited, the Operational Creditor and Mr. Sitansh Magia was appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor.
Conclusion- Section 33(2) of the Code lays down that where the resolution professional at any time during the CIRP but before confirmation of resolution plan intimates the Adjudicating Authority of the decision of the CoC approved by not less than 66% of the voting share to liquidate the Corporate Debtor, it shall pass an order requiring the Corporate Debtor to be liquidated in the manner as laid down in Chapter-III of Part-II of the Code; issue a public announcement stating that the Corporate Debtor is in liquidation and require the said order to be sent to the authority with which the Corporate Debtor is registered.
