# In the matter of AYURWIN PHARMA PRIVATE LIMITED

> NCLT judgment dated 2021-01-04. Citation: TCN-2021-NCLT-03406. The case involves the Corporate Insolvency Resolution Process (CIRP) of Ayurwin Pharma Private…

- **Court:** NCLT
- **Order date:** 4 Jan 2021
- **Citation:** TCN-2021-NCLT-03406
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ayurwin-pharma-private-limited-cd6dd225

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of Ayurwin Pharma Private Limited. The CIRP was initiated based on a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. Ms. Shirley Mathew was appointed as the Resolution Professional (RP). Several applications were filed, including I.A. No.523/2020 for early dissolution, I.A. No.524/2020 for the sale of assets, and I.A. No.328/2020 for liquidation. The Committee of Creditors (CoC) initially consisted of Corporation Bank, later reconstituted with the inclusion of IndusInd Bank. The RP sought directions for the dissolution of the Corporate Debtor due to the insufficiency of assets to cover liquidation costs and the lack of prospects for revival.

## Facts

The Corporate Debtor, Ayurwin Pharma Private Limited, underwent CIRP following an application under Section 9 of the IBC. Ms. Shirley Mathew served as the Resolution Professional. The CIRP was initiated due to the company's financial distress, with operations ceasing in March 2017. The admitted claims of financial and operational creditors totaled Rs.87,04,06,564/-, while the realizable assets were only Rs.24,28,600/-. The Committee of Creditors (CoC) initially comprised Corporation Bank, later including IndusInd Bank. Valuation reports indicated minimal liquidation value for the Corporate Debtor's assets. The CoC unanimously resolved to sell the assets and dissolve the company. The last available audited financial statements were for the year 2014-15. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Ayurwin Pharma Private Limited, should be dissolved due to …

**Ratio:** The ultimate objective of the IBC is either to resolve the issue through a Resolution

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**Reasoning:** The Adjudicating Authority considered that the liquidation value of available assets was

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**Interpretation:** This legal issue involves the interpretation of the IBC's objectives and the

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**Application:** Given the insufficient assets, lack of future prospects, and the CoC's

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…; +2 more
- **Appellants:** Shirley M…
- **Respondents:** Ayurwin Pharma…

## Timeline

- **2020-02-05 — CIRP Admi…**: The petition seeking CIRP against…
- **2020-02-26 — Last Date for…**: The last date for submission…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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