# In the matter of Affinity Finance Services Pvt. Ltd. Vs. Kiev Finance Ltd. CA (AT) (Insolvency) No. 171-2019

> NCLAT judgment dated 2019-04-26. Citation: TCN-2019-NCLAT-00636. The appellant, an operational creditor, filed a petition under Section 9 of the Insolvency &…

- **Court:** NCLAT
- **Order date:** 26 Apr 2019
- **Citation:** TCN-2019-NCLAT-00636
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/affinity-finance-services-pvt-ltd-vs-kiev-finance-ltd-ca-9aa52563

## Summary

### Background

The appellant, an operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of the corporate insolvency resolution process against the respondent, the Corporate Debtor, for defaulting on debt payments. The Adjudicating Authority admitted the petition on 2018-02-28. An Interim Resolution Professional (IRP) was appointed, and a Committee of Creditors (COC) was formed. The IRP was later confirmed as the Resolution Professional. The COC held six meetings but did not receive a resolution plan within 180 days. The Resolution Professional then approached the Adjudicating Authority for liquidation of the Corporate Debtor.

## Facts

Affinity Finance Services Pvt Ltd, the appellant and an operational creditor, initiated corporate insolvency resolution process (CIRP) against Kiev Finance Ltd, the respondent and corporate debtor, due to default in debt payment. The Adjudicating Authority admitted the petition on 2018-02-28, appointed an Interim Resolution Professional (IRP), and formed a Committee of Creditors (COC). The COC held six meetings but did not receive any resolution plan within the stipulated 180-day period. Consequently, the Resolution Professional sought liquidation of the Corporate Debtor, which was approved by the Adjudicating Authority. Subsequently, an application was filed by the Liquidator to recall the liquidation order after M/s Nigania Promoters Private Limited expressed

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in ordering the liquidation of the Corporate …

**Ratio:** The Insolvency & Bankruptcy Code mandates that if no resolution plan is approved by

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**Reasoning:** The Adjudicating Authority's decision to order liquidation was based on the fact that the

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**Interpretation:** The legal framework prioritizes timely resolution of insolvency. If a

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**Application:** In this case, the COC held six meetings but did not receive any resolution

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## Parties

- **Judges:** Bansi Lal…; Balvinder…
- **Appellants:** Affinity Finance…
- **Respondents:** Kiev Finan…

## Timeline

- **2018-02-28 — Petition Ad…**: The Adjudicating Authority admitted the…
- **2018-09-10 — Liquidation…**: The Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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