NCLT Delhi Ordered Liquidation Of M/S. Hema Automotive Pvt. Ltd Stated Under Section 33 Of IBC

The National Company Law Tribunal, Delhi bench in the case Mr. Vivek Sharma (Interim Resolution Professional of M/s Hema Automotive Pvt. Ltd) in the matter of M/s. Five Ess Precision Components Pvt. Ltd. vs M/s. Hema Automotive Pvt. Ltd observed and has ordered for the Liquidation of corporate Debtor, M/s. Hema Automotive Pvt. Ltd.
In the present case, the company in the case was admitted into the Corporate Insolvency Resolution Process, CIRP on July, 08, 2022. Thus, the Financial Creditor, Hero Fincorp Ltd being the sole member of the Committee of Creditors, CoC. Therefore, the Committee of Creditors, CoC in the case resolved to liquidate the Corporate Debtor in its 4th meeting held with the 100% voting as the Company was not a Going Concern since the last 2 years before the Corporate Insolvency Resolution Process, CIRP was initiated and all the assets of the Company had already been realized by Hero Fincorp Ltd under the Securitisation an Reconstruction Of Financial Assets and Enforcement Of Security Interest Act 2002, SARFAESI before commencement of Corporate Insolvency Resolution Process, CIRP.
Further, it has also been observed by the Adjudicating Authority that the decision taken by Committee of Creditors, CoC for the liquidation in commercial wisdom of the Committee of Creditors should not be interfered with by the Adjudicating Authority and that extension of time will only be resulting in unnecessary expenses being ordered for Liquidation of M/s. Hema Automotive Pvt. Ltd as it is stated under section 33 of Insolvency and Bankruptcy Code, 2016.