# In the matter of  A Earthmovers Pvt. Ltd. CP-33-(IB)-2018

> NCLT judgment dated 2018-06-01. Citation: TCN-2018-NCLT-01343. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor…

- **Court:** NCLT
- **Order date:** 1 Jun 2018
- **Citation:** TCN-2018-NCLT-01343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-earthmovers-pvt-ltd-cp-33-ib-2018-fecfed34

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on April 9, 2018. Mr. Avva Jaganadham Athindranath was initially appointed as the Interim Resolution Professional (IRP), but he refused to carry on the assignment. Subsequently, on April 24, 2018, Mr. Ramakrishnan Sathyanarayanan was appointed as IRP, but he also refused to carry on the assignment. Due to the non-availability of an IRP, the CIRP was not in progress.

## Facts

The Sawhney Trading Company Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against K.A Earthmovers Pvt Ltd. The CIRP was initiated on 2018-04-09. Initially, Mr. Avva Jaganadham Athindranath was appointed as IRP, but he refused the assignment. Subsequently, Mr. Ramakrishnan Sathyanarayanan was appointed as IRP, but he also refused. Due to the lack of an IRP, the CIRP did not progress. The Operational Creditor filed Form '2' seeking the consent of Mr. S. Vasudevan to act as IRP. The counsel for the Corporate Debtor did not object to the appointment of Mr. S. Vasudevan as IRP.

## Issues and analysis

### Issue 1: Whether Mr. S. Vasudevan should be appointed as the Interim Resolution Professional (IRP) to …

**Ratio:** The court has the power to appoint an IRP to ensure the smooth functioning of the CIRP

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**Reasoning:** The court reasoned that the CIRP had stalled due to the refusal of previously appointed

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**Interpretation:** The court interpreted the IBC, 2016, as providing the necessary framework for

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**Application:** Given the stalled CIRP and the consent of Mr. S. Vasudevan, along with the lack

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** SAWHNEY TRADING…
- **Respondents:** K.A EARTHMOVERS…

## Timeline

- **2018-04-09 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-04-09 — IRP Appoint…**: Mr. Avva Jaganadham…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 20 — Management of operations of corporate debtor as…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-20)

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