# In the matter of Aashita Builders Pvt. Ltd. MA 3695-2019 in C.P.(IB)- 3244-(MB)-2018

> NCLT judgment dated 2020-02-10. Citation: TCN-2020-NCLT-02022. The case involves an application filed by the Resolution Professional (RP) under Section 33 of…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aashita-builders-pvt-ltd-ma-3695-2019-in-cpib-3244-mb-2018-a61bd4d8

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of the corporate debtor, Aashita Builders Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) commenced on 27.02.2019 following the admission of a petition. The applicant was appointed as Interim Resolution Professional (IRP) and later continued as RP. A public announcement was issued on 23.02.2019, inviting creditors to submit their claims. Only one financial creditor filed a claim, which was fully admitted. The Committee of Creditors (COC), consisting of the sole financial creditor, confirmed the applicant as RP on 22.03.2019. Despite efforts to find a resolution plan, including re-publishing the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Aashita Builders Pvt Ltd on 27.02.2019. Indiabulls Housing Finance Ltd is the sole financial creditor, with a claim of Rs. 70,91,53,403, which was fully admitted. The Resolution Professional (RP) made efforts to find a resolution plan, including issuing public announcements and inviting expressions of interest. Despite these efforts, no resolution plan was received. The Committee of Creditors (COC) then resolved to liquidate the corporate debtor on 12.11.2019. The RP filed an application under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking liquidation. The Adjudicating Authority found that the RP had complied with the necessary procedures and that no resolution plan had been

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation

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**Reasoning:** The court reasoned that since no resolution plan was submitted despite efforts to solicit

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**Interpretation:** Section 33(1)(a) provides a clear pathway for liquidation when the CIRP fails

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**Application:** In this case, the absence of a resolution plan, despite the RP's efforts,

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Respondents:** Aashita Builders…

## Timeline

- **2019-02-27 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) commenced following the admission of a…
- **2019-02-23 — Public Annou…**: Public announcement issued, inviting…

## 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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