# In the matter of Avadh Rai Infra Ltd. CP-691-(IB)-CB-2017

> NCLT judgment dated 2018-03-07. Citation: TCN-2018-NCLT-01744. The case involves M/s.Avadh Rail Infra Limited. The Interim Resolution Professional (IRP)…

- **Court:** NCLT
- **Order date:** 7 Mar 2018
- **Citation:** TCN-2018-NCLT-01744
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avadh-rai-infra-ltd-cp-691-ib-cb-2017-f546aea4

## Summary

### Background

The case involves M/s.Avadh Rail Infra Limited. The Interim Resolution Professional (IRP) submitted a report stating that there were no claims from financial/operational creditors, employees, or others concerning the public announcement. The IRP also stated that a sample survey and scrutiny of records showed that financial and operational creditors did not show interest in participating in the Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s.Avadh Rail Infra Limited is the corporate debtor. The IRP submitted a report stating that there were no claims from financial/operational creditors, employees, or others concerning the public announcement. A sample survey and scrutiny of records showed that financial and operational creditors did not show interest in participating in the CIRP. The only claim made pursuant to the public announcement was by Mr. Kamal Chand, an ex-employee of the corporate debtor. His claim was fully settled by the corporate debtor as stated in the IRP's report submitted on 2018-03-01. The relevance of these facts is that they indicate a lack of creditor interest and the settlement of the only claim, leading to the recall of the moratorium.

## Issues and analysis

### Issue 1: Whether the moratorium declared for the commencement of the resolution process should be recalled …

**Ratio:** The legal principle applied is that if there is a lack of creditor interest in

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**Reasoning:** The court reasoned that since the IRP's report indicated no other claims and a lack of

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**Interpretation:** The interpretation is that the CIRP is intended to be a process driven by

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** K. ANANTHA…; S. VIJAYARA…
- **Appellants:** Mr.Kamal…
- **Respondents:** M/s.Avadh Rail…

## Timeline

- **2018-03-01 — IRP Report Su…**: The Interim Resolution Professional (IRP) submitted a report stating that there were no…
- **2018-03-07 — Order Del…**: The court delivered an order recalling the moratorium for the commencement of the…

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