# In the matter of Durha Vitrak Private Limited IA-901-2021 In (IB)-470(ND)-2019

> NCLT judgment dated 2021-05-31. Citation: TCN-2021-NCLT-02066. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 May 2021
- **Citation:** TCN-2021-NCLT-02066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/durha-vitrak-private-limited-ia-901-2021-in-ib-470nd-2019-ab49e5e1

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) seeking a liquidation order. The Committee of Creditors (CoC) passed a resolution in its 6th meeting on 28.01.2021 to initiate liquidation, as they deemed the resolution plans received to be not feasible and viable. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the applicant was appointed as the Interim Resolution Professional (IRP). The IRP invited claims from creditors and constituted a CoC consisting of only one financial creditor, LIC Housing Finance Limited. The IRP was later appointed as RP. The RP prepared an Information Memorandum and apprised the CoC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Durha Vitrak Pvt. Ltd. LIC Housing Finance Ltd. is the financial creditor. An application was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking a liquidation order. The Committee of Creditors (CoC) resolved to initiate liquidation in its 6th meeting held on 28.01.2021, finding the resolution plans unfeasible. The CIRP was admitted on 08.11.2019. The applicant was appointed as IRP and later as RP. The CoC consisted of only one financial creditor, LIC Housing Finance Limited. The RP prepared an Information Memorandum. The Form G was issued and re-issued. The CIR period was extended. The resolution professional received an expression of interest from 4 prospective

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court considered the application and the averments made therein and found that the

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**Interpretation:** Section 33(2) grants the CoC the authority to decide on liquidation if

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**Application:** The court applied the provisions of Section 33(2) to the facts of the case,

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** LIC Housing…
- **Respondents:** Durha Vitrak…; Durha Vitrak Pvt.…

## Timeline

- **2019-11-08 — CIRP Admi…**: (IB)-470(ND)/2019 was…
- **2019-12-09 — RP Appoin…**: IRP was appointed as RP in…

## 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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