# In the matter of DBS Affordable Home Strategy Ltd. IA 770 of 2019 in CP(IB) 304-NCLT-AHM-2019

> NCLT judgment dated 2020-12-03. Citation: TCN-2020-NCLT-00174. The application was filed under sections 33 and 34 of the IB Code, seeking liquidation of the…

- **Court:** NCLT
- **Order date:** 3 Dec 2020
- **Citation:** TCN-2020-NCLT-00174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dbs-affordable-home-strategy-ltd-ia-770-of-2019-in-cpib-304-nclt-ahm-2019-bc7b5387

## Summary

### Background

The application was filed under sections 33 and 34 of the IB Code, seeking liquidation of the Corporate Debtor. No Expression of Interest (EOI) was received by the applicant. The Committee of Creditors (COC) deliberated that the Corporate Debtor does not have significant assets except book debts. The COC concluded that revival and resolution were not feasible, leaving liquidation as the only viable option. The COC, in its 7th meeting held on 2020-09-30, decided to send the company under liquidation and authorized the RP to file an application for a liquidation order from the Adjudicating Authority.

## Facts

The Corporate Debtor, DBS Affordable Home Strategy Ltd, faced Corporate Insolvency Resolution Process (CIRP). No Expression of Interest (EOI) was received for the Corporate Debtor. The Committee of Creditors (COC) determined that the Corporate Debtor possessed no significant assets beyond book debts, rendering revival or resolution unfeasible. Consequently, the COC resolved in its 7th meeting on 2020-09-30 to initiate liquidation proceedings. The Resolution Professional (RP) was authorized to seek a liquidation order from the Adjudicating Authority. All operational creditors, numbering two, were present during the COC meeting. The Adjudicating Authority observed no objections to the liquidation. The COC held 100% of the voting share. The RP filed an application under

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the liquidation of the Corporate Debtor based on …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) is paramount and should not be

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**Reasoning:** The Hon'ble Supreme Court has affirmed that neither the Adjudicating Authority nor the

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**Interpretation:** This principle reinforces the autonomy of the COC in making decisions regarding

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**Application:** In this case, the COC decided that liquidation was the only viable option due

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Pinakin Shah…
- **Respondents:** DBS Affordable…; Agam Printers…

## Timeline

- **2020-09-30 — 7th COC M…**: The COC decided to send the company under liquidation and authorized the RP to file an…
- **2020-12-03 — Order Da…**: The Adjudicating Authority passed an order for liquidation of the Corporate Debtor under…

## 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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