# In the matter of Ajaz Nanda Designs Pvt. Ltd. IA-1910(PB)-2020 in Company Petition (IB)-1738(PB)-2018

> NCLT judgment dated 2020-12-22. Citation: TCN-2020-NCLT-00028. The case pertains to an application filed under Section 33 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Dec 2020
- **Citation:** TCN-2020-NCLT-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ajaz-nanda-designs-pvt-ltd-ia-1910pb-2020-in-company-petition-ib-1738pb-2018-60db14f1

## Summary

### Background

The case pertains to an application filed under Section 33 of the Insolvency and Bankruptcy Code (IBC) by the Committee of Creditors (CoC) of a corporate debtor, Jammu & Kashmir Bank Ltd. The CoC, constituted of a sole creditor bank, sought an order for the liquidation of the corporate debtor, Ajaz Nanda Designs Pvt Ltd., on the grounds that the company had no assets. The Resolution Professional (RP) supported the liquidation, stating that a Section 7 petition filed by the creditor bank had initiated the Corporate Insolvency Resolution Process (CIRP) on 2019-05-21. The IRP constituted a CoC with the sole creditor, the petitioner bank.

## Facts

The Jammu & Kashmir Bank Ltd., acting as the sole creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against Ajaz Nanda Designs Pvt Ltd. by filing a Section 7 petition, which was admitted on 2019-05-21. Subsequently, an Interim Resolution Professional (IRP) was appointed, who then constituted a Committee of Creditors (CoC) consisting solely of Jammu & Kashmir Bank Ltd. After assessing the company's financial status, the CoC determined that the corporate debtor possessed no assets. Consequently, on 2020-02-10, the CoC passed a resolution proposing the liquidation of Ajaz Nanda Designs Pvt Ltd. The Resolution Professional (RP) then filed an application under Section 33 of the Insolvency and Bankruptcy Code (IBC) seeking an order for liquidation.

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## Issues and analysis

### Issue 1: Whether the application filed under Section 33 of the IBC by the CoC for the liquidation of the …

**Ratio:** The ratio is that under Section 33 of the IBC, the Adjudicating Authority may order the

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**Reasoning:** The court reasoned that the CoC, being the sole creditor, had determined that the

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**Interpretation:** Section 33 of the IBC allows the CoC to decide on the liquidation of the

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**Application:** In this case, the CoC, consisting of the sole creditor, Jammu & Kashmir

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## Parties

- **Judges:** B.S.V. Prakash…; HEMANT KUMAR…
- **Appellants:** Neeraj B…
- **Respondents:** Ajaz Nanda…

## Timeline

- **2019-05-21 — CIRP Init…**: CIRP was initiated against Ajaz Nanda Designs Pvt Ltd. based on a Section 7 petition…
- **2020-02-10 — CoC Resolution for…**: The CoC, consisting of Jammu & Kashmir Bank Ltd., passed a resolution proposing the…

## 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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