# In the matter of DURHA VITRAK PRIVATE LIMITED

> NCLT judgment dated 2021-05-20. Citation: TCN-2021-NCLT-02104. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 May 2021
- **Citation:** TCN-2021-NCLT-02104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/durha-vitrak-private-limited-d07250fc

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, by the Resolution Professional (RP) seeking a liquidation order for Durha Vitrak Private Limited. The Committee of Creditors (CoC) resolved to initiate the liquidation process after deeming the received resolution plans not feasible. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the RP invited claims from creditors and constituted a CoC with LIC Housing Finance Limited as the primary financial creditor. The RP prepared an Information Memorandum and sought expressions of interest, receiving interest from four prospective resolution applicants but only two proposed resolution plans.

## Facts

Durha Vitrak Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code (IBC), 2016. LIC Housing Finance Limited was the primary financial creditor. Aishwarya Mohan Gahrana was appointed as the Resolution Professional (RP). The RP invited claims from creditors and constituted a Committee of Creditors (CoC). Dr. Arinjaya Jain, another financial creditor, was a related party to the Corporate Debtor. The RP prepared an Information Memorandum and sought expressions of interest. Four prospective resolution applicants expressed interest, but only two submitted resolution plans. The CoC, in its 6th meeting on 2021-01-28, deemed the resolution plans unfeasible and resolved to initiate liquidation. The RP filed an

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## Issues and analysis

### Issue 1: Whether the application filed under Section 33(2) of the IBC for liquidation of the Corporate …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The court considered the CoC's decision to liquidate the Corporate Debtor after deeming

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when resolution efforts

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**Application:** The CoC resolved to liquidate Durha Vitrak Private Limited. The court, based on

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## Parties

- **Judges:** B.S.V. Prakash…; HEMANT KUMAR…
- **Respondents:** Durha Vitrak…
- **Advocates:** Ahsan A…

## Timeline

- **2019-11-08 — CIRP Admi…**: The application…
- **2019-12-09 — RP Appoin…**: IRP was appointed as RP in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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