# In the matter of Ardor Global Ltd. & Ors. IA 344-2018 in C.P. (IB) No. 33-NCLT-AHM-2017

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01781. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Ardor…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01781
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ardor-global-ltd-ors-ia-344-2018-in-cp-ib-no-33-nclt-ahm-2017-6df0c31e

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Ardor Global Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IB Code). The Adjudicating Authority admitted the case on 31.07.2017 and appointed an Interim Resolution Professional (IRP). The IRP made a public announcement calling for submission of claims from creditors. The Committee of Creditors (CoC) later proposed a different Resolution Professional (RP), which faced opposition. The Adjudicating Authority declined to recommend the proposed RP due to violations of the IB Code. The IRP was directed to convene another CoC meeting to propose a new RP. Eventually, Chandra Prakash Jain was proposed as the RP.

## Facts

M/s. Renish Petrochem FZF, UAE initiated CIRP against Ardor Global Private Limited under Section 9 of the IB Code. The Adjudicating Authority admitted the case on 31.07.2017 and appointed Shri Ravi Kapoor as IRP. The CoC proposed Shri Ramubhai S Patel as RP, but this was opposed. Shri Chandra Prakash Jain was later proposed as RP. The RP filed IA No. 228 of 2018 for liquidation of Ardor Global Private Limited under sections 33(1), 33(2), and 34(1) of the IB Code. IA No. 344 of 2018 was filed by Shri Fenil Bharatbhai Shah, a suspended board of director, challenging the rejection of the resolution plan of M/s. GSEC Ltd. by the CoC. The CoC rejected the resolution plan because it did not meet their expectations. The CIRP period expired on 26.04.2018. The suspended board

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## Issues and analysis

### Issue 1: Whether the suspended board of directors of the Corporate Debtor Company has the locus standi to …

**Ratio:** The suspended board of directors of a Corporate Debtor Company generally lacks the locus

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**Reasoning:** The Adjudicating Authority reasoned that the suspended board of directors' role is

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**Interpretation:** The interpretation is that the IB Code prioritizes the CoC's decision-making

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**Application:** In this case, the Adjudicating Authority applied the ratio by holding that the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Fenil Bharatbhai…
- **Respondents:** Ardor Global…

## Timeline

- **2017-07-31 — Admission of CP(IB) No.…**: The Adjudicating Authority admitted the Corporate Insolvency Resolution Process (CIRP)…
- **2017-07-31 — Appointment…**: Shri Ravi Kapoor was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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