# In the matter of Ajaz Nanda Designs Private Limited IA 3246(PB)-2021 in Company Petition No.1739 (PB) -2018

> NCLT judgment dated 2021-12-07. Citation: TCN-2021-NCLT-00242. The case involves an application filed by the applicant/liquidator of M/s Ajaz Nanda Designs…

- **Court:** NCLT
- **Order date:** 7 Dec 2021
- **Citation:** TCN-2021-NCLT-00242
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ajaz-nanda-designs-private-limited-ia-3246pb-2021-in-company-petition-no1739-pb-4b13a568

## Summary

### Background

The case involves an application filed by the applicant/liquidator of M/s Ajaz Nanda Designs Private Limited, the Corporate Debtor, under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking early dissolution of the corporate debtor. The Jammu & Kashmir Bank, the sole financial creditor, had previously filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. This application was allowed, and CIRP was initiated on 2019-05-21, with the applicant appointed as the Resolution Professional. The ex-directors of the corporate debtor did not cooperate with the

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## Facts

The Jammu & Kashmir Bank, acting as the sole financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s Ajaz Nanda Designs Private Limited, the Corporate Debtor, by filing an application under Section 7 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated vide order dated 2019-05-21, and a resolution professional was appointed. However, the ex-directors of the Corporate Debtor did not cooperate with the resolution professional, leading to the filing of an application under Section 19(2) of the IBC. Bailable warrants were issued, but they could not be served as the ex-directors had relocated to Dubai. Due to the absence of assets, records, documents, and personnel, the CIRP could not proceed, and it was unanimously

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Ajaz Nanda Designs Private Limited, should be dissolved due to …

**Ratio:** The ratio is based on the principle that if the continuation of CIRP or liquidation is

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**Reasoning:** The court reasoned that since there was no possibility to continue the liquidation

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**Interpretation:** Section 54 of the IBC and Rule 14 of Liquidation Regulations are interpreted to

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts,

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## Parties

- **Judges:** DEEPTI M…; SHRI. HEMANT…
- **Appellants:** Jammu & Kashmir…
- **Respondents:** M/s Ajaz Nanda…

## Timeline

- **2019-05-21 — CIRP Init…**: CIRP was initiated against the Corporate…
- **2020-02-10 — Resolution to…**: It was unanimously resolved to liquidate the Corporate Debtor in a meeting held on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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