# In the matter of Avasarala Venkateswara Rao vide CP(IB) No. 51-94-HDB-2021

> NCLT judgment dated 2021-07-15. Citation: TCN-2021-NCLT-01745. The case involves a Company Petition/Application with the number CP (IB) No. 51/94/I/HDB/2021.…

- **Court:** NCLT
- **Order date:** 15 Jul 2021
- **Citation:** TCN-2021-NCLT-01745
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avasarala-venkateswara-rao-vide-cpib-no-51-94-hdb-2021-a130b1ce

## Summary

### Background

The case involves a Company Petition/Application with the number CP (IB) No. 51/94/I/HDB/2021. The petitioner appeared, but no one appeared for the respondent. The petitioner suggested the name of an Interim Resolution Professional (IRP).

## Facts

The Company Petition/Application number is CP (IB) No. 51/94/I/HDB/2021. The company involved is Servomax India Pvt Ltd. The petitioner is Avasarala Venkateswara Rao, and the respondent is State Bank of India & Servomax India Pvt Ltd. The case is filed under Section 94. The petitioner's counsel appeared, but the respondent's counsel did not. The petitioner suggested the name of an IRP, who was subsequently appointed. The IRP is directed to file a report within 10 days. An interim moratorium is issued under Section 96 of the IBC. The respondent is directed to file a reply within two weeks. The matter is adjourned to 2021-08-26.

## Issues and analysis

### Issue 1: Whether an Interim Resolution Professional (IRP) should be appointed based on the petitioner's …

**Ratio:** The court has the power to appoint an IRP to manage the affairs of the corporate debtor

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**Reasoning:** The court considered the petitioner's suggestion for an IRP and found it appropriate to

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**Interpretation:** The appointment of an IRP is a crucial step in initiating the insolvency

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**Application:** The court applied this principle by appointing the IRP suggested by the

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## Parties

- **Judges:** Shrimadan…; Veera Brahma Rao…
- **Appellants:** Avasarala…
- **Respondents:** Servomax India…; State Bank of…

## Timeline

- **2021-07-15 — Hearing…**: Hearing held on 15.07.2021 at 10:30 AM.…
- **2021-08-26 — Adjournmen…**: Matter stands adjourned…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 96 — Interim- moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-96)

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