# In the matter of Atharva Advisory Services Pvt. Ltd. MA No. 3405-2019 In C. P. No. 2488-I&B-2018

> NCLT judgment dated 2019-12-04. Citation: TCN-2019-NCLT-00337. The Corporate Insolvency Resolution Process (CIRP) was initiated against Atharva Advisory…

- **Court:** NCLT
- **Order date:** 4 Dec 2019
- **Citation:** TCN-2019-NCLT-00337
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/atharva-advisory-services-pvt-ltd-ma-no-3405-2019-in-c-p-no-2488-ib-2018-185c7861

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Atharva Advisory Services Pvt. Ltd. The Adjudicating Authority ordered the initiation on 2018-11-27, based on a petition filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC). Mr. Manoj Kumar Jain was appointed as the Interim Resolution Professional (IRP). Subsequently, in a meeting on 2018-12-27, the Committee of Creditors (CoC) resolved to appoint Mr. Manoj Kumar Jain as the Resolution Professional (RP), which was approved by the Bench.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Atharva Advisory Services Pvt. Ltd. based on a petition under Section 7 of the IBC. Manoj Kumar Jain was appointed as IRP and later as RP. A public announcement was made on 2018-11-29. Two registered valuers were appointed on 2019-06-17. An advertisement inviting Expression of Interest was issued on 2019-02-18. The CoC, with 100% voting rights, resolved to liquidate the company on 2019-08-13 because no resolution plan was received and the company was not a going concern, incurring losses since inception. Laxmikant Yeshwant Desai agreed to act as liquidator. The Adjudicating Authority approved the liquidation under Section 33(1) of the Code. The order directed the liquidator to send the order to

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of a resolution plan and its …

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

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**Reasoning:** The CoC, holding 100% voting rights, passed a resolution for liquidation due to the

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**Interpretation:** Section 33(1) provides the legal basis for initiating liquidation when the CIRP

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**Application:** In this case, the absence of a resolution plan, coupled with the Corporate

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Manoj Kuma…
- **Respondents:** Atharva Advisory…

## Timeline

- **2018-11-27 — CIRP Init…**: Adjudicating Authority ordered initiation of CIRP against Atharva Advisory Services Pvt.…
- **2018-12-27 — RP Appoin…**: CoC resolved to appoint Mr. Manoj…

## Legal provisions

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

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