# In the matter of Aarvanss Infrastructure Private Limited IA-2188-ND-2020 in Company Petition No. (IB)-669(ND)-2019

> NCLT judgment dated 2020-11-02. Citation: TCN-2020-NCLT-00312. The case involves an application filed by the Resolution Professional (RP) of M/s Aarvanss…

- **Court:** NCLT
- **Order date:** 2 Nov 2020
- **Citation:** TCN-2020-NCLT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarvanss-infrastructure-private-limited-ia-2188-nd-2020-in-company-petition-no-i-0c6490c0

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of M/s Aarvanss Infrastructure Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the corporate debtor. The Financial Creditor, M/s Volkswagen Finance Private Limited, had initially filed an application under Section 7 of the IBC, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Aarvanss Infrastructure Private Limited. The application was admitted, and Mr. Kamal Agarwal was appointed as the Interim Resolution Professional (IRP).

## Facts

M/s Volkswagen Finance Private Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Aarvanss Infrastructure Private Limited, the Corporate Debtor, under Section 7 of the IBC, 2016. The application was admitted, and Mr. Kamal Agarwal was appointed as the Interim Resolution Professional (IRP). The IRP constituted the Committee of Creditors (CoC), with Volkswagen Finance Private Limited holding 74% voting share and HDFC Bank Limited holding 26%. The CoC decided to liquidate the Corporate Debtor, citing the deterioration of asset value, the fact that the Corporate Debtor was not a going concern since 01.04.2015, the absence of a registered office, lack of employees, and non-cooperation from suspended directors. The CoC voted

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The CoC, with 100% voting share, resolved to liquidate the corporate debtor due to the

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** The CoC's decision, based on the corporate debtor's financial condition and

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Respondents:** Aarvanss Infrastru…; Volkswagen…

## Timeline

- **2019-09-17 — Admission of Ap…**: The Tribunal admitted the application filed by the Financial Creditor for initiating CIRP…
- **2019-09-25 — Public Annou…**: The Interim Resolution Professional made a public announcement in Form-A, published in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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