# In the matter of Allwyn Furniture Private Limited CA No.937-2019 In CP (IB) No. 298-Chd-Hry-2018

> NCLT judgment dated 2020-01-20. Citation: TCN-2020-NCLT-02273. Vardhman Trading Company initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 20 Jan 2020
- **Citation:** TCN-2020-NCLT-02273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/allwyn-furniture-private-limited-ca-no937-2019-in-cp-ib-no-298-chd-hry-2018-18962b85

## Summary

### Background

Vardhman Trading Company initiated Corporate Insolvency Resolution Process (CIRP) against Allwyn Furniture Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Adjudicating Authority (AA) admitted the application on 07.01.2019 and appointed Sunil Kumar Agrawal as Interim Resolution Professional (IRP) on 16.01.2019. The RP constituted a Committee of Creditors (CoC) comprising of Indian Overseas Bank. Form G was issued on 23.03.2019, setting deadlines for Expression of Interest (EOI) and resolution plan submission. No EOI was received, and the CIRP period was extended until 04.10.2019. The RP filed an application for liquidation on 18.10.2019, as the CIRP period expired and no resolution plan was received.

## Facts

Vardhman Trading Company initiated CIRP against Allwyn Furniture Private Limited. The AA admitted the application on 07.01.2019 and appointed Sunil Kumar Agrawal as IRP on 16.01.2019. The RP constituted a CoC with Indian Overseas Bank as the sole financial creditor. Form G was issued on 23.03.2019, with deadlines for EOI and resolution plan submission. No EOI was received. The CIRP period was extended to 04.10.2019. The RP intimated the ex-Directors of the corporate debtor regarding the CIRP commencement but received no cooperation. The registered office of the corporate debtor was not found, and the works place was locked. The landlord denied handing over the assets. The CoC passed a resolution for liquidation on 18.09.2019 with 100% voting rights. The RP filed an

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency & Bankruptcy …

**Ratio:** Section 33(2) of the Code requires the RP to intimate the AA of the decision of the CoC

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**Reasoning:** The court reasoned that the application for liquidation was filed on 18.10.2019, which

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**Interpretation:** Section 33(2) is interpreted to mean that the CoC's decision to liquidate must

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**Application:** Since the application was filed after the CIRP period, the court found that it

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Vardhman Trading…
- **Respondents:** Allwyn Furniture…
- **Advocates:** Vaibhav…

## Timeline

- **2019-01-07 — CIRP Init…**: Adjudicating Authority…
- **2019-01-16 — Appointment…**: Sunil Kumar Agrawal was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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