# In the matter of East West Logistics Pvt. Ltd. C.A. 161-CV-ND-2019 in IB-2372-ND-2019

> NCLT judgment dated 2019-12-20. Citation: TCN-2019-NCLT-00052. An application (CA-161/C-V/ND/2019) was filed by the Operational Creditor seeking termination…

- **Court:** NCLT
- **Order date:** 20 Dec 2019
- **Citation:** TCN-2019-NCLT-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/east-west-logistics-pvt-ltd-ca-161-cv-nd-2019-in-ib-2372-nd-2019-af20a512

## Summary

### Background

An application (CA-161/C-V/ND/2019) was filed by the Operational Creditor seeking termination of the Corporate Insolvency Resolution Process (CIRP). The order of admission was not communicated to the Interim Resolution Professional (IRP), and no steps were taken to invite claims or form the Committee of Creditors (CoC). The IRP, Mr. Alok, confirmed this fact.

## Facts

M/s. Aargus Global Logistics Pvt. Ltd. filed an application for the termination of the CIRP against M/s East West Logistics Pvt Ltd. The application, bearing number CA-161/C-V/ND/2019, was filed by the Operational Creditor. The primary reason for seeking termination was that the order of admission was not communicated to the IRP, and consequently, no steps were taken to invite claims or form the CoC. Mr. Alok, the IRP, confirmed this fact. The court considered the directions given by the Hon'ble Apex Court in 'Swiss Ribbons and Anr. Vs. Union of India', which allows for the termination of CIRP before the CoC is formed. The relevance of these facts lies in the procedural lapse in communicating the admission order to the IRP, preventing the CIRP from progressing as

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## Issues and analysis

### Issue 1: Whether the CIRP can be terminated prior to the constitution of the Committee of Creditors (CoC) …

**Ratio:** The legal principle applied is that CIRP can be terminated prior to the constitution of

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**Reasoning:** The court reasoned that since the order of admission was not communicated to the IRP, and

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**Interpretation:** The interpretation of the legal issue involves understanding the circumstances

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**Application:** In this specific case, the ratio and reasoning were applied to the facts that

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## Parties

- **Judges:** Ina Mal…; Saroj Ra…
- **Appellants:** M/s. Aargus…
- **Respondents:** M/s East West…

## Timeline

- **2019-12-20 — Order Del…**: Order delivered on 20.12.2019, directing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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