# In the matter of Sunil S. Kakkad Promoter and Shareholder of Sai Infosystems (India) Ltd. Vs. Atrium Infocom Private Limited and others CA (AT) (Insolvency) No. 194 of 2020

> NCLAT judgment dated 2020-08-10. Citation: TCN-2020-NCLAT-00174. The appeal arises from an order dated December 5, 2019, by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLAT-00174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sunil-s-kakkad-promoter-and-shareholder-of-sai-infosystems-india-ltd-vs-atrium-i-03534005

## Summary

### Background

The appeal arises from an order dated December 5, 2019, by the National Company Law Tribunal (NCLT), Ahmedabad Bench, in IA No. 758 of 2019 in CP No. 181/NCLT/AHM/2019, which initiated liquidation of the Corporate Debtor, Atrium Infocomm Private Limited. The appellant, Sunil S. Kakkad, promoter and shareholder of M/s Sai Infosystems (India) Ltd, filed the appeal under Section 61 of the Insolvency and Bankruptcy Code (I&B Code), 2016, seeking to set aside the impugned order. The NCLT initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor on July 10, 2019. During CIRP, the Interim Resolution Professional (IRP) formed a Committee of Creditors (CoC). The CoC decided in its third meeting on September 21, 2019, to liquidate the Corporate

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## Facts

Sunil S. Kakkad, the promoter and shareholder of M/s Sai Infosystems (India) Ltd, filed an appeal against the liquidation order of Atrium Infocomm Private Limited. The NCLT initiated CIRP against Atrium Infocomm on July 10, 2019. The IRP formed a CoC, which held three meetings. In the second meeting, the CoC deferred the decision to publish Expression of Interest (EOI). In the third meeting on September 21, 2019, the CoC resolved to liquidate the Corporate Debtor, citing its non-operational status for the past five years and the lack of a resolution plan. The IRP then applied for liquidation, which was approved by the Adjudicating Authority on December 5, 2019. The appellant challenged this order, arguing that the IRP failed to perform necessary steps under CIRP and

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## Issues and analysis

### Issue 1: Whether the Resolution Professional, with the approval of CoC with 66% vote share, can directly …

**Ratio:** The Committee of Creditors (CoC) is empowered to order liquidation at any stage of the

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**Reasoning:** The tribunal reasoned that the statutory provision permits the CoC to take the decision

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**Interpretation:** Section 33(2) of the I&B Code, along with its explanation, empowers the CoC

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**Application:** In this case, the CoC, with 100% vote share, decided to liquidate Atrium

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## Parties

- **Judges:** Jarat Kuma…; Mr Balvinde…; +1 more
- **Appellants:** Sunil S.…
- **Respondents:** Atrium Infocomm…
- **Advocates:** Mr Abhijeet…; Mr Chirag…; +3 more

## Timeline

- **2019-07-10 — CIRP Init…**: The Learned Adjudicating Authority triggered Corporate Insolvency Resolution Process…
- **2019-09-21 — CoC Meet…**: In the third CoC meeting, the CoC passed the Resolution that Corporate Debtor Company is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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