# In the matter of Abhayam Trading Ltd. CA-140-IB-2018 in CP-491-IB-2017

> NCLT judgment dated 2018-03-23. Citation: TCN-2018-NCLT-01650. The case involves an application filed under Section 54(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Mar 2018
- **Citation:** TCN-2018-NCLT-01650
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhayam-trading-ltd-ca-140-ib-2018-in-cp-491-ib-2017-55966ca4

## Summary

### Background

The case involves an application filed under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, seeking the dissolution of the Corporate Debtor, M/s. Abhayam Trading Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an application by M/s. Chivas Trading Private Limited, a Financial Creditor, under Section 7 of the I&B Code, 2016. The application was admitted on May 31, 2017. However, no resolution plan was approved during the CIRP, leading to an order for liquidation on November 17, 2017. Mr. Rakesh Chaturvedi was appointed as the Liquidator.

## Facts

M/s. Abhayam Trading Limited was the Corporate Debtor. M/s. Chivas Trading Private Limited filed an application under Section 7 of the I&B Code, 2016, as a Financial Creditor, which led to the initiation of the Corporate Insolvency Resolution Process (CIRP) against Abhayam Trading Limited. The CIRP commenced on May 31, 2017, but no resolution plan was approved by the Committee of Creditors (CoC). Consequently, an order for liquidation was passed on November 17, 2017, and Mr. Rakesh Chaturvedi was appointed as the Liquidator. The Liquidator submitted a final report and Asset Sale Report as per Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016. The liquidation process was completed, and all realizable assets were distributed to the stakeholders. The

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, M/s. Abhayam Trading Limited, …

**Ratio:** Section 54(2) of the I&B Code, 2016, empowers the Adjudicating Authority to order the

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**Reasoning:** The court reasoned that the liquidation process had been completed, as evidenced by the

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**Interpretation:** Section 54(2) of the I&B Code is interpreted to mean that once the

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**Application:** The court applied the ratio of Section 54(2) to the facts of the case, noting

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Respondents:** Abhayam Trading…

## Timeline

- **2017-05-31 — CIRP Init…**: Application by M/s. Chivas Trading Private Limited under Section 7 of the I&B Code…
- **2017-11-17 — Liquidation…**: No resolution plan approved during CIRP; order for liquidation passed, and Mr. Rakesh…

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