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

> NCLT judgment dated 2019-01-16. Citation: TCN-2019-NCLT-05233. The case pertains to an insolvency resolution process initiated by M/s Vardhman Trading…

- **Court:** NCLT
- **Order date:** 16 Jan 2019
- **Citation:** TCN-2019-NCLT-05233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/allwyn-furniture-private-limited-cp-ib-no298-chd-hry-2018-5faccecc

## Summary

### Background

The case pertains to an insolvency resolution process initiated by M/s Vardhman Trading Company, an operational creditor, against Allwyn Furniture Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The initial petition was admitted on 07.01.2019. The current order is for declaring a moratorium and appointing an Interim Resolution Professional (IRP).

## Facts

M/s Vardhman Trading Company, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Allwyn Furniture Private Limited, the corporate debtor. The petition was admitted on 07.01.2019. The court is now passing a formal order to declare a moratorium and appoint an Interim Resolution Professional. Sunil Kumar Agrawal has furnished communication in Form No.2. The order declares a moratorium under Section 14(1) of the Code, which includes restrictions on suits, asset transfers, and recovery actions against the corporate debtor. Sunil Kumar Agrawal is appointed as the Interim Resolution Professional. The powers of the Board of Directors of Allwyn Furniture Private Limited are suspended. The IRP is directed to make a

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## Issues and analysis

### Issue 1: Whether a moratorium should be declared under Section 14(1) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 14(1) of the Insolvency and Bankruptcy Code, 2016, provides for the declaration

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**Reasoning:** The court reasoned that since the application under Section 9 was admitted on 07.01.2019,

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**Interpretation:** Section 14(1) is interpreted to mean that upon admission of an insolvency

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**Application:** The court applied Section 14(1) to the facts of the case, declaring a

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** M/s Vardhman…
- **Respondents:** Allwyn Furniture…

## Timeline

- **2019-01-07 — Admission of…**: The petition filed by M/s Vardhman Trading Company against Allwyn Furniture Private…
- **2019-01-16 — Order for Moratorium…**: The court passed an order declaring a moratorium and appointing Mr. Sunil Kumar Agrawal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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