# In the matter of Aradhya Wire and Ropes Pvt. Ltd. I.A. No. 433-2020 in C. P. (IB)No. 366-BB-2019

> NCLT judgment dated 2020-11-18. Citation: TCN-2020-NCLT-00245. The case involves an application filed by the Resolution Professional (RP) of M/s. Aradhya Wire…

- **Court:** NCLT
- **Order date:** 18 Nov 2020
- **Citation:** TCN-2020-NCLT-00245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aradhya-wire-and-ropes-pvt-ltd-ia-no-433-2020-in-c-p-ibno-366-bb-2019-8b753506

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of M/s. Aradhya Wire and Ropes Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking approval for the initiation of the liquidation process of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated on February 12, 2020. The Committee of Creditors (COC) decided to proceed with liquidation due to the company's inability to be revived, considering its assets versus liabilities. The RP was appointed as the liquidator.

## Facts

M/s. Aradhya Wire and Ropes Private Limited was admitted into CIRP on February 12, 2020, following a petition under Section 10 of the IBC. Mr. V.S. Varun was appointed as the IRP and later confirmed as the RP. The first COC meeting was held on March 13, 2020, where South Indian Bank, the sole member, appointed the IRP as RP. An application to exclude the lockdown period from the CIRP timeline was allowed, excluding 82 days. The 180-day CIRP timeline was extended to October 30, 2020. The COC decided to proceed with liquidation due to the company's financial condition. As of March 31, 2020, the company's liabilities were Rs. 39,60,72,980, while the liquidation value of its assets was Rs. 31,33,009.79. Valuations of plant and machinery, securities, and financial assets

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Aradhya Wire and Ropes …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass an order for

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**Reasoning:** The COC, after considering the financial position of the Corporate Debtor, including its

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

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**Application:** In this case, the COC's decision was based on the fact that the liabilities of

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## Parties

- **Judges:** Ashok Kumar…; Ashutosh C…
- **Appellants:** V.S.V…
- **Respondents:** M/s. Aradhya Wire…

## Timeline

- **2020-02-12 — CIRP Init…**: Adjudicating Authority initiated CIRP in respect of M/s. Aradhya Wire and Ropes Private…
- **2020-02-12 — Appointment…**: Mr. V.S.Varun appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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