# In the matter of Adhils Builders and Developers Pvt. Ltd. MA-100-KOB-2020 in IBA-45-KOB-2019

> NCLT judgment dated 2020-08-28. Citation: TCN-2020-NCLT-00766. The matter pertains to MA/100/KOB/2020 in IBA/45/KOB/2019 filed before the National Company Law…

- **Court:** NCLT
- **Order date:** 28 Aug 2020
- **Citation:** TCN-2020-NCLT-00766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adhils-builders-and-developers-pvt-ltd-ma-100-kob-2020-in-iba-45-kob-2019-5778f2f2

## Summary

### Background

The matter pertains to MA/100/KOB/2020 in IBA/45/KOB/2019 filed before the National Company Law Tribunal (NCLT), Kochi Bench. The Resolution Professional filed the MA seeking liquidation of Adhils Builders and Developers Pvt. Ltd. based on the resolution passed by the Committee of Creditors (CoC). The CoC recommended liquidation due to a lack of response from prospective investors and the belief that continuing the CIRP would reduce the value for stakeholders. The CoC also proposed the appointment of Shri Dileep KP as the liquidator. The Tribunal considered the CoC's resolution and the submissions of the Resolution Professional.

## Facts

The Corporate Debtor is Adhils Builders and Developers Pvt. Ltd. The Committee of Creditors (CoC), with State Bank of India as the sole financial creditor holding 100% voting power, resolved to liquidate the company due to a lack of response from prospective investors after the information memorandum was discussed on January 21, 2020, and an expression of interest was published on February 5, 2020. The CoC's decision was made during their 5th meeting held on July 30, 2020. The CoC proposed Shri Dileep KP as the liquidator. The CoC also considered the costs of the CIRP, including Rs. 16.88 lakhs, and the dues to the Resolution Professional (RP) amounting to Rs. 12.96 lakhs. The CIRP completion was delayed due to lockdown restrictions. The Bank has moved for physical

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Adhils Builders and Developers Private Limited, should be put under …

**Ratio:** Section 33(1)(a) of the IBC, 2016 allows for the liquidation of a corporate debtor if the

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**Reasoning:** The CoC, in its 5th meeting, resolved to liquidate the Corporate Debtor due to a lack of

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**Interpretation:** Section 33(1)(a) provides the legal basis for initiating liquidation

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**Application:** The Tribunal applied Section 33(1)(a) of the IBC, 2016, based on the CoC's

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** ASHRAF ABULLA…
- **Respondents:** ADHILS BUILDERS…

## Timeline

- **2019-11-28 — Admission of IBA No.…**: The Tribunal admitted IBA No. 45/KOB/2019 and appointed the applicant as the Interim…
- **2019-12-17 — Constitution of…**: The Committee of Creditors (CC) was constituted with the Sole financial creditor viz.,…

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