# In the matter of Asveens Forging Private Limited MA-395-2019 in CP-195-IB-2018

> NCLT judgment dated 2019-06-07. Citation: TCN-2019-NCLT-03002. The case pertains to the liquidation of Asveens Forging Private Limited under Section 33 & 34…

- **Court:** NCLT
- **Order date:** 7 Jun 2019
- **Citation:** TCN-2019-NCLT-03002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asveens-forging-private-limited-ma-395-2019-in-cp-195-ib-2018-98b0fe21

## Summary

### Background

The case pertains to the liquidation of Asveens Forging Private Limited under Section 33 & 34 of the IBC, 2016. The Resolution Professional (RP) filed an application for liquidation based on a resolution passed by the Committee of Creditors (CoC). Initially, the RP issued a public notice inviting claims. The first CoC meeting took place on 2018-08-09, and the second on 2018-08-24. The CoC determined that the Corporate Debtor had no assets and decided to proceed with liquidation instead of continuing the Corporate Insolvency Resolution Process (CIRP). The RP did not immediately file a liquidation application. Later, other Financial Creditors made claims and were included in the CoC. The 14th CoC meeting on 2019-03-29 unanimously passed a resolution for liquidation.

## Facts

The Corporate Debtor, Asveens Forging Private Limited, underwent Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) was appointed and issued a public notice inviting claims. The Committee of Creditors (CoC) convened multiple meetings. In the second CoC meeting, it was determined that the Corporate Debtor possessed no assets. Consequently, the CoC resolved to pursue liquidation instead of continuing CIRP. The RP initially did not file a liquidation application. Subsequently, additional financial creditors emerged and were incorporated into the CoC. The 14th CoC meeting resulted in a unanimous resolution for liquidation. The RP then filed an application under Section 33 & 34 of the IBC, 2016, for liquidation. The NCLT considered the

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional under Section 33 & 34 of the IBC, …

**Ratio:** Section 33 & 34 of the IBC, 2016, provides the framework for liquidation proceedings

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**Reasoning:** The court reasoned that the CoC had already resolved for liquidation due to the absence

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**Interpretation:** Section 33 & 34 of the IBC, 2016, are interpreted to allow for liquidation

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**Application:** The court applied the provisions of Section 33 & 34 to the facts of the

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Muthuiah Thevar…
- **Respondents:** Asveens Forging…; S. Shanmuga…

## Timeline

- **2018-08-09 — First CoC M…**: The first meeting of the Committee…
- **2018-08-24 — Second CoC…**: In the second CoC meeting, the CoC noticed that the Corporate Debtor had no assets and…

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