# 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-00347. 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-00347
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sh-sudhir-kumar-awasthi-vs-avinash-em-projects-pvt-ltd-ors-6badd16e

## 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.

## 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 provided no 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 CoC decided not to publish Form G before deciding to liquidate. The court considered the submissions of both parties and perused the record.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in …

**Ratio:** The CoC is empowered to take the decision to liquidate, although judicial review is

…

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

…

**Interpretation:** The court interpreted the statutory scheme as empowering the CoC to make

…

**Application:** The court applied the ratio to the facts of the case, finding that the CoC had

…

## 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…
- **2024-07-03 — Hearing…**: The court heard learned counsel for…

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