# In the matter of Avance Logistics & Trading India Pvt. Ltd. I.A. 54-2018 in C.P. (IB)- 1245-(MB)-2017

> NCLT judgment dated 2018-12-24. Citation: TCN-2018-NCLT-00016. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Dec 2018
- **Citation:** TCN-2018-NCLT-00016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avance-logistics-trading-india-pvt-ltd-ia-54-2018-in-cp-ib-1245-mb-2017-850d4b39

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Bell Finvest (India) Ltd. against Avance Logistics & Trading India Pvt. Ltd. The application was admitted on 2017-09-11, and Mr. Devendra P. Jain was appointed as the Interim Resolution Professional (IRP). Public announcement was made, inviting claims against the Corporate Debtor. Two secured financial creditors, Bell Finvest (India) Limited and M/s. Bharat Co-operative Bank Limited, filed claims. The Committee of Creditors (CoC) was formed, and meetings were held. A valuer was appointed but could not conduct valuation due to lack of information. No Resolution Plan was received by the RP.

## Facts

Bell Finvest (India) Ltd. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Avance Logistics & Trading India Pvt. Ltd., claiming a financial debt of Rs. 53,43,350. The application was admitted on 2017-09-11, and Mr. Devendra P. Jain was appointed as the Interim Resolution Professional (IRP). A public announcement was made, inviting claims against the Corporate Debtor. Bell Finvest (India) Limited and M/s. Bharat Co-operative Bank Limited filed claims for ₹ 1,31,77,571/- and ₹3,04,82,937/-, respectively. The Committee of Creditors (CoC) was formed and convened on 2018-02-06. Three CoC meetings were held between 2017-09-11 and 2018-07-19. A valuer was appointed but could not conduct valuation due to lack of information. No

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the failure of the Corporate Insolvency …

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

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**Reasoning:** The court reasoned that the CIRP had failed because no resolution plan was received, and

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if the CIRP fails and the CoC

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**Application:** In this case, the CIRP failed as no resolution plan was received, and the CoC

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Devendra…
- **Respondents:** Avance Logistics…
- **Advocates:** KunalKa…; Vioneet N.…; +1 more

## Timeline

- **2017-07-27 — Application…**: Bell Finvest (India) Ltd. filed an application under Section 7 of the IBC against Avance…
- **2017-09-11 — Application A…**: The application under Section…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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