Case Law Details
Tri-Wall Pak Private Limited Vs 5 Core Acoustics Private Limited (NCLT Delhi)
Introduction: In a significant decision, the National Company Law Tribunal (NCLT) Delhi has ordered the liquidation of M/s 5 Core Acoustics Private Limited following an application by the Resolution Professional, Mr. Radhey Shyam Yadav. This ruling, under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, highlights the authority of the Committee of Creditors (CoC) to liquidate a corporate debtor any time after its constitution and before the confirmation of a resolution plan. This case provides crucial insights into the application of the IBC in corporate insolvency and the judicial stance on CoC’s decision-making powers.
Detailed Analysis
Case Background: The insolvency proceedings against M/s 5 Core Acoustics Private Limited (the Corporate Debtor) were initiated based on an application filed under Section 9 of the IBC by M/s Tri-Wall Pak Private Limited (the Operational Creditor). The NCLT appointed Mr. Radhey Shyam Yadav as the Interim Resolution Professional, later confirmed as the Resolution Professional.
Despite compliance with regulatory requirements, including public announcements and claim admissions, significant issues arose:
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