Indo Spirits Vs Multicity Hospitals LLP (NCLT Mumbai)
NCLT Mumbai held that application for liquidation of Corporate Debtor [Multicity Hospitals LLP] in terms of section 33(2) of the Insolvency and Bankruptcy Code [IBC] is allowed as decided by members of CoC.
Facts- This is an application filed by Mr. Shailesh Chandra Ojha, Resolution Professional (“RP”) of M/S Multicity Hospitalities LLP, the Corporate Debtor before this Adjudicating Authority under Section 33 (2) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the liquidation proceedings against the Corporate Debtor based on the decision taken by the Committee of Creditors (CoC) in its 9th meeting held on 26.09.2025.
Conclusion- Held that we do not find any reason not to accept the commercial decision of the CoC to liquidate the CD, as the same will only delay the closure of the process prescribed under the IBC and erode the value of the CD further, which would not be in conformity with the overall object and intent of the IBC. Thus, the application filed by Mr. Shailesh Chandra Ojha, the Resolution Professional of M/S Multicity Hospitalities LLP, the Corporate Debtor is allowed and the Corporate Debtor is ordered to be liquidated in terms of Section 33(2) of the IBC.
