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

> NCLT judgment dated 2020-08-03. Citation: TCN-2020-NCLT-00915. 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-00915
- **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-ece5baf9

## 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) against M/s. Alfapeople IT Services Pvt Ltd. The COC appointed the Applicant as Resolution Professional. The COC passed resolutions for direct dissolution of the Corporate Debtor due to low liquidation value compared to admitted claims.

## Facts

M/s. Learning Candid India Pvt Ltd initiated CIRP against M/s. Alfapeople IT Services Pvt Ltd. The Adjudicating Authority admitted the application on February 5, 2020. The COC appointed Surendra Devasani as the Resolution Professional (RP). The RP sought orders for assignment of bank balances, GST refunds, and VAT refunds to M/s. Learning Candid India Pvt Ltd, dissolution of the Corporate Debtor, and exclusion of the COVID-19 lockdown period from the CIRP. The CIRP period was ending on August 3, 2020. The COC passed resolutions for direct dissolution of the Corporate Debtor due to low liquidation value (Rs.46,213) compared to admitted claims (Rs.35,70,225). The Corporate Debtor's operations were shut since April 2018, with no employees or fixed assets. The only assets

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the assignment of bank and cash balance, GST …

**Ratio:** The Adjudicating Authority has the power to pass appropriate orders in the interest of

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**Reasoning:** The Adjudicating Authority considered the financial position of the Corporate Debtor and

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**Interpretation:** The Adjudicating Authority interpreted the provisions of the Code to allow for

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**Application:** The Adjudicating Authority declared M/s. Learning Candid India Pvt Ltd eligible

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## Parties

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

## Timeline

- **2020-02-05 — Admission of CIRP…**: 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 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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