Manish Shah Vs SPG Macrocosm Ltd (NCLT Indore)
The National Company Law Tribunal (NCLT), Indore Bench, in the matter of Manish D Shah vs. M/s SPG Macrocosm Limited, has ordered the liquidation of the Corporate Debtor, M/s SPG Macrocosm Limited, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC). This decision followed the unanimous resolution of the Committee of Creditors (CoC) to liquidate the company, citing the absence of ongoing business, employees, and realizable assets.
Background and Corporate Insolvency Resolution Process (CIRP)
The initial application under Section 7 of the IBC was filed by a Financial Creditor, Fortune Land Holdings LLP, which had advanced an unsecured loan of Rs 70,00,000/- with an interest rate of 15% per annum. The total debt, including interest, stood at Rs 1,14,62,500/- as of the stated date of default, October 1, 2021.
The NCLT had initially dismissed the Section 7 petition on February 29, 2024, on the grounds that it was based on an “invalid and unenforceable instrument.” However, this order was challenged before the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, in Company Appeal (AT) (Insolvency) No. 621 of 2024. The NCLAT, on August 20, 2024, allowed the appeal, setting aside the NCLT’s dismissal and directing the admission of the petition.
