# In the matter of Flexi Infotech Private Limited I.A. No. 2713-(ND)-2021 Connected with IB-1625-(ND)-2019

> NCLT judgment dated 2021-12-22. Citation: TCN-2021-NCLT-00074. The case involves an application filed by the Interim Resolution Professional (IRP) of Flexi…

- **Court:** NCLT
- **Order date:** 22 Dec 2021
- **Citation:** TCN-2021-NCLT-00074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flexi-infotech-private-limited-ia-no-2713-nd-2021-connected-with-ib-1625-nd-2019-9ee0eb52

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) of Flexi Infotech Private Limited, seeking liquidation of the Corporate Debtor under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The application stems from an earlier application under Section 9 of the IBC, 2016, filed by the Operational Creditor, Ashmit Corporation Private Limited, which was admitted. The IRP made a public announcement and constituted the Committee of Creditors (COC), with Ashmit Corporation as the sole member. The Operational Creditor did not comply with directions regarding remittance of funds for the CIR process. Multiple COC meetings were held, but resolutions for approval of IRP fees and confirmation of the IRP as Resolution Professional were not

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## Facts

Ashmit Corporation Private Limited, an Operational Creditor, initiated insolvency proceedings against Flexi Infotech Private Limited under Section 9 of the IBC, 2016. The application was admitted, and Vikas Garg was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and constituted a Committee of Creditors (COC), with Ashmit Corporation as the sole member. The Operational Creditor failed to remit funds for the Corporate Insolvency Resolution Process (CIRP). Several COC meetings were held, but resolutions for approval of IRP fees and confirmation of the IRP as Resolution Professional were not approved. The IRP filed an application seeking liquidation of the Corporate Debtor, stating that no resolution plan was received within the

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## Issues and analysis

### Issue 1: Whether the Tribunal should order the liquidation of the Corporate Debtor, Flexi Infotech Private …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, mandates that where the

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**Reasoning:** The Tribunal reasoned that no resolution plan was received within the 270-day period, and

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that liquidation is the default

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**Application:** In this case, the absence of a resolution plan within the 270-day period

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAHUL…
- **Appellants:** Ashmit Corporation…
- **Respondents:** Flexi Infotech…

## Timeline

- **2020-03-16 — Tribunal…**: The Hon'ble Tribunal admitted the application filed by Ashmit Corporation Private Limited…
- **2020-03-20 — Public Annou…**: The IRP made a public announcement in Form A as required under regulation 6 of IBBI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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