# In the matter of AKR Home Depot Private Limited MA-738-2019 in CP-1469-IB-2018

> NCLT judgment dated 2019-08-19. Citation: TCN-2019-NCLT-01941. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Aug 2019
- **Citation:** TCN-2019-NCLT-01941
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akr-home-depot-private-limited-ma-738-2019-in-cp-1469-ib-2018-5b8d89f9

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking a liquidation order for AKR Home Depot Private Limited. The Resolution Professional filed the application based on a resolution passed by the Committee of Creditors (CoC) with 100% voting in favor of liquidation. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 04.02.2019, and Mr. N. Kumar was appointed as the Interim Resolution Professional (IRP). The IRP issued a public announcement, collated claims amounting to ₹11.90 Crores, and constituted the CoC on 08.03.2019. The IRP stated that no asset was found in the Company except a third-party asset upon which loan was taken from the sole Financial Creditor,

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## Facts

AKR Home Depot Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under the Insolvency and Bankruptcy Code (IBC), 2016. Mr. N. Kumar was appointed as the Interim Resolution Professional (IRP) and later as the liquidator. The IRP made a public announcement and collated claims amounting to ₹11.90 Crores. The Committee of Creditors (CoC), consisting of the sole financial creditor, Indian Overseas Bank, voted with 100% majority in favor of liquidating the company. The primary reason for liquidation was the absence of any viable assets within the company, except for a third-party asset against which a loan was taken from Indian Overseas Bank. The Resolution Professional then filed an application before the National Company Law

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, AKR Home Depot Private Limited, …

**Ratio:** Section 33(2) of the IBC, 2016 allows for the initiation of liquidation proceedings when

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**Reasoning:** The court reasoned that since the CoC had voted with 100% majority in favor of

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when

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**Application:** In this case, the CoC's unanimous decision to liquidate, coupled with the

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## Parties

- **Judges:** B.S.V. Prakash…; Anil Ku…
- **Respondents:** AKR Home Depot…

## Timeline

- **2019-02-04 — Admission in…**: The Company Petition was admitted by the…
- **2019-02-09 — Public Annou…**: The IRP issued a public…

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