# In the matter of Adharshlia Country Homes Private Limited IB-1489-ND-2018

> NCLT judgment dated 2020-07-20. Citation: TCN-2020-NCLT-01002. The application was filed seeking the initiation of liquidation of the Corporate Debtor as per…

- **Court:** NCLT
- **Order date:** 20 Jul 2020
- **Citation:** TCN-2020-NCLT-01002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adharshlia-country-homes-private-limited-ib-1489-nd-2018-def5ea3c

## Summary

### Background

The application was filed seeking the initiation of liquidation of the Corporate Debtor as per Section 33 of the Insolvency & Bankruptcy Code, 2016, and for issuing a public announcement. The CIRP period of 330 days had expired on 2020-02-12. The applicant stated they could not apply for further extension of the CIRP. The applicant filed for urgent hearing as almost three months had lapsed from the date of CIRP. The CIRP cost was increasing, and the Corporate Debtor did not have much realisable value from the assets.

## Facts

The Corporate Debtor's CIRP period of 330 days expired on 2020-02-12. The applicant stated they could not apply for further extension of the CIRP. The applicant filed for urgent hearing as almost three months had lapsed from the date of CIRP. The CIRP cost was increasing, and the Corporate Debtor did not have much realisable value from the assets. The Resolution Professionals incurred a total expenditure of Rs. 7,56,407 during the CIRP, out of which Rs. 4,40,223 has been ratified. The balance amount, although approved, could not be ratified in the previous meeting of the COC. The applicant requested for urgent hearing, and the court allowed the application.

## Issues and analysis

### Issue 1: Whether the application for initiating liquidation of the Corporate Debtor should be allowed given …

**Ratio:** Section 33 of the Insolvency & Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court considered the submissions that the CIRP period had expired, and the applicant

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**Interpretation:** The legal issue revolves around the interpretation of Section 33 of the IBC,

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**Application:** Given the facts that the CIRP period had expired, and the applicant was unable

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## Parties

- **Judges:** P.S.N. P…; SUMITA PURK…; +1 more
- **Appellants:** Anuj Kumar…
- **Respondents:** Adharshila…

## Timeline

- **2020-02-12 — Expiry of CIR…**: The Corporate Debtor's CIRP…
- **N/A — Application for Urgent…**: The applicant filed an application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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