# In the matter of Associated Trade Logistics Pvt. Ltd. IB-183-ND-2018

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01428. The case pertains to an application moved by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/associated-trade-logistics-pvt-ltd-ib-183-nd-2018-4d50a68f

## Summary

### Background

The case pertains to an application moved by the Resolution Professional (RP) under Section 33(2) read with Section 60(5) of the Insolvency & Bankruptcy Code, 2016 (IBC) seeking liquidation of the Corporate Debtor. The Committee of Creditors (COC) had decided to liquidate the Corporate Debtor in its 7th meeting held on 28.2.2019 and recommended the name of the RP to act as the Liquidator. The Corporate Debtor was involved in the freight forwarding business. The order of admission was passed on 31.7.2018, and the CIR process commenced from that date. The Tribunal had excluded 41 days from the CIR process, extending the period of completion.

## Facts

Air Shagoon (Network) (P) Ltd initiated a corporate insolvency resolution process (CIRP) against Associated Trade Logistics (P) Ltd. The order of admission was passed on 2018-07-31. The Committee of Creditors (COC) resolved to liquidate the Corporate Debtor in its 7th meeting held on 2019-02-28. The Resolution Professional (RP) filed an application under Section 33(2) read with Section 60(5) of the Insolvency & Bankruptcy Code, 2016 (IBC) seeking liquidation of the Corporate Debtor. The Corporate Debtor was involved in the freight forwarding business. The Corporate Debtor was not carrying out any activities for a period of more than two years while the application was pending before the Tribunal. The Tribunal excluded 41 days from the CIR process, extending the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the IBC, …

**Ratio:** Section 33(2) of the IBC, 2016 allows the Resolution Professional to file an application

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**Reasoning:** The COC had decided to liquidate the Corporate Debtor in its 7th meeting held on

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**Interpretation:** Section 33(2) of the IBC, 2016 provides a mechanism for the liquidation of a

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**Application:** The COC's decision to liquidate the Corporate Debtor, coupled with the RP's

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## Parties

- **Judges:** Sh.R. Varad…; K.K. V…
- **Appellants:** AIR SHAGOON…
- **Respondents:** ASSOCIATED TRADE…

## Timeline

- **2018-07-31 — Order of Ad…**: Order of admission was…
- **2018-09-15 — 1st COC M…**: 1st COC Meeting was…

## 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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