# In the matter of Sh. Sudhir Kumar Awasthi vs. Avinash EM Projects Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-07-03. Citation: TCN-2024-NCLAT-00344. The appeal was filed against the order dated 2024-03-18 by the Adjudicating Authority, which…

- **Court:** NCLAT
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-NCLAT-00344
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sh-sudhir-kumar-awasthi-vs-avinash-em-projects-pvt-ltd-ors-008043b8

## Summary

### Background

The appeal was filed against the order dated 2024-03-18 by the Adjudicating Authority, which allowed an application for liquidation filed by the Resolution Professional. The appellant is the suspended director of the Corporate Debtor. The appellant contends that no reasons were given in the third CoC meeting regarding the decision to liquidate and that the Corporate Debtor was not sold as a going concern, and there are chances of revival.

## Facts

The Adjudicating Authority allowed an application for liquidation filed by the Resolution Professional. The Appellant, the suspended director of the Corporate Debtor, filed an appeal against this order. The Appellant argued that the CoC did not provide reasons for the liquidation decision in the third CoC meeting and that the Corporate Debtor was not sold as a going concern. The Respondent argued that the CoC discussed the matter in the third and fourth CoC meetings and passed a resolution for liquidation in the fourth CoC meeting. The Respondent also stated that there are no assets and the Corporate Debtor has already been blacklisted. The CoC deliberated on all aspects of the matter and decided to liquidate the Corporate Debtor after deciding not to publish Form G.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in …

**Ratio:** The CoC is empowered to take the decision to liquidate under the statutory scheme,

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**Reasoning:** The court found that the CoC had deliberated on all aspects of the matter and taken the

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**Interpretation:** The statutory scheme empowers the CoC to make decisions regarding liquidation,

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**Application:** In this case, the court found no adequate grounds to interfere with the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sh. Sudhir Kumar…
- **Respondents:** Avinash EM…
- **Advocates:** Udita S…; Jagriti…; +1 more

## Timeline

- **2024-03-18 — Order by Adjudicating…**: The Adjudicating Authority allowed the application I.A. No. 6451 of 2023 filed by the…
- **2024-07-03 — Hearing…**: Heard learned counsel for the Appellant as…

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