# In the matter of Arudaavis Labs Private Limited IA-280-2020 in CP-877-IB-2018

> NCLT judgment dated 2021-02-12. Citation: TCN-2021-NCLT-03056. The case involves an application (IA/280/2020) filed in CP/877/IB/2018 under Section 33(1)(a)…

- **Court:** NCLT
- **Order date:** 12 Feb 2021
- **Citation:** TCN-2021-NCLT-03056
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arudaavis-labs-private-limited-ia-280-2020-in-cp-877-ib-2018-98af3162

## Summary

### Background

The case involves an application (IA/280/2020) filed in CP/877/IB/2018 under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, concerning M/s. Arudaavis Labs Private Limited. The Resolution Professional (Rajalakshmi Varadarajan) sought an order for liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2019-07-30 following a Section 9 application by the Operational Creditor. The applicant was appointed as Interim Resolution Professional (IRP). Public notice was issued, and Canara Bank was identified as the sole Financial Creditor. The Committee of Creditors (CoC) was formed, and the applicant was appointed as the Resolution Professional. The applicant visited the Corporate Debtor's registered office, found

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## Facts

M/s. Arudaavis Labs Private Limited faced insolvency proceedings initiated by an Operational Creditor under Section 9 of the IBC, leading to the commencement of CIRP on 2019-07-30. Rajalakshmi Varadarajan was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Canara Bank was identified as the sole Financial Creditor, and a Committee of Creditors (CoC) was formed. Despite efforts to find a resolution plan, including issuing an Expression of Interest (EoI), only one company initially showed interest but later withdrew. The Corporate Debtor was found to be non-operational, and the RP took possession of its fixed assets. The CoC, exercising its commercial wisdom, determined that the Corporate Debtor could not be revived

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Arudaavis Labs Private Limited, should be liquidated under …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor due to the

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**Interpretation:** Section 33(1)(a) grants the Adjudicating Authority the power to order

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was based on

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Rajalakshmi…
- **Respondents:** Arudaavis Labs…

## Timeline

- **2018-01-01 — CP/877/IB/201…**: Filing of CP/877/IB/2018…
- **2019-07-30 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated following a Section 9…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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