# 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-02072. The case involves an application filed under Section 33(2) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 May 2021
- **Citation:** TCN-2021-NCLT-02072
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/durha-vitrak-private-limited-ia-901-2021-in-ib-470nd-2019-f1ef7fce

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency & Bankruptcy Code, 2016 by the Resolution Professional (RP) seeking a liquidation order for the Corporate Debtor, Durha Vitrak Private Limited. The application is based on a resolution passed by the Committee of Creditors (CoC) in its 6th meeting held on 28.01.2021, where the CoC, with a requisite majority, decided that no resolution plan was feasible or viable, and thus opted for liquidation.

## Facts

LIC Housing Finance Ltd. initiated insolvency proceedings against Durha Vitrak Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 08.11.2019. An Interim Resolution Professional (IRP) was appointed, who later became the Resolution Professional (RP). The Committee of Creditors (CoC) consisted of only one financial creditor, LIC Housing Finance Limited. The RP prepared an Information Memorandum and presented it to the CoC. The CoC, in its 6th meeting on 28.01.2021, resolved to liquidate the Corporate Debtor as no resolution plan was deemed feasible or viable. The RP filed an application under Section 33(2) of the IBC seeking a liquidation order. The CoC extended the CIRP period and excluded the period from 25.03.2020 to

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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 the Adjudicating

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**Reasoning:** The CoC, in its 6th meeting, resolved to liquidate the Corporate Debtor as no resolution

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** The CoC's decision to liquidate the Corporate Debtor, Durha Vitrak Private

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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 — Admission of Ap…**: Application (IB-470(ND)/…
- **2019-12-09 — Appointment…**: 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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