# In the matter of Aifapeople IT Services Pvt. Ltd. I.A. 260-2020 in C.P. (IB) No. 307-BB-2019

> NCLT judgment dated 2020-08-03. Citation: TCN-2020-NCLT-00912. The case involves an application (I.A. No. 260 of 2020) filed in C.P. (IB) No. 307/BB/2019 by…

- **Court:** NCLT
- **Order date:** 3 Aug 2020
- **Citation:** TCN-2020-NCLT-00912
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aifapeople-it-services-pvt-ltd-ia-260-2020-in-cp-ib-no-307-bb-2019-291bd840

## Summary

### Background

The case involves an application (I.A. No. 260 of 2020) filed in C.P. (IB) No. 307/BB/2019 by the Resolution Professional (RP) of M/s. AlfaPeople IT Services Pvt Ltd, seeking orders for assignment of bank and cash balance, GST refund, and VAT refund to M/s. Learning Candid India Pvt Ltd, dissolution of the Corporate Debtor, and exclusion of the COVID-19 lockdown period from the CIRP period. The CIRP was initiated by M/s. Learning Candid India Pvt Ltd (Financial Creditor) under Section 7 of the IBC, and the Adjudicating Authority admitted the application on February 5, 2020. The COC appointed the Applicant as Resolution Professional on June 16, 2020. The IRP published Form A in newspapers on May 22, 2020, intimating the commencement of CIRP. The COC was constituted on

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## Facts

M/s. Learning Candid India Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against M/s. AlfaPeople IT Services Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on February 5, 2020. The Resolution Professional (RP), Surendra Devasani, was appointed. The RP filed an application (I.A. No. 260 of 2020) seeking directions for assignment of the Corporate Debtor's bank balance (Rs.21,153), GST refund (Rs.3,62,546), and VAT refund (Rs.15,000) to the Financial Creditor, M/s. Learning Candid India Pvt Ltd, and for dissolution of the Corporate Debtor. The RP also sought exclusion of 68 days from the CIRP period due to the COVID-19 lockdown. The Corporate Debtor's operations ceased in April 2018, and it has no

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the assignment of the Corporate Debtor's assets to …

**Ratio:** Section 54 of the Code allows the Adjudicating Authority to order the dissolution of the

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**Reasoning:** The Adjudicating Authority considered the fact that the liquidation value of the assets

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**Interpretation:** Section 54 provides a mechanism for the dissolution of a corporate debtor when

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**Application:** The Adjudicating Authority directed the assignment of the Corporate Debtor's

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** AlfaPeople IT…; M/s. AlfaPeople…

## Timeline

- **2020-02-05 — CIRP Application…**: The Adjudicating Authority admitted the CIRP application filed by M/s. Learning Candid…
- **2020-05-22 — Publication o…**: The IRP caused publication of Form A in newspapers, intimating the commencement of CIRP…

## 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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