# In the matter of IAP Company Pvt. Ltd. CA-140-ND-2019 in IB-446-ND-2017

> NCLT judgment dated 2020-09-28. Citation: TCN-2020-NCLT-00518. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against IAP…

- **Court:** NCLT
- **Order date:** 28 Sept 2020
- **Citation:** TCN-2020-NCLT-00518
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/iap-company-pvt-ltd-ca-140-nd-2019-in-ib-446-nd-2017-edd177c9

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against IAP Company Pvt. Ltd. following an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, by Takkshill Enterprises, an Operational Creditor. The application was admitted on 2018-02-28. Mr. Dharmendra Kumar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional. Despite several Committee of Creditors (CoC) meetings, a resolution plan could not be approved, with a majority of the CoC voting against it. The CoC recommended liquidation, advising the RP to take measures to reduce fixed costs and maintain the Corporate Debtor as a going concern during the intervening period until the liquidation order.

## Facts

Takkshill Enterprises filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against IAP Company Pvt. Ltd. The application was admitted on 2018-02-28, initiating the Corporate Insolvency Resolution Process (CIRP). Mr. Dharmendra Kumar was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional. Several meetings of the Committee of Creditors (CoC) were held. In the 11th CoC meeting held on 2019-02-01, the resolution plan was discussed, but 68.58% of the CoC members voted against it, 25.88% abstained, and only 5.54% voted in favor. The CoC recommended liquidation and advised the RP to take measures to reduce fixed costs and maintain the Corporate Debtor as a going concern. The RP filed

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, IAP Company Pvt. Ltd., should be liquidated due to the failure of the …

**Ratio:** Section 30(6) of the I&B Code, 2016, mandates that if no resolution plan is received

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**Reasoning:** The NCLT reasoned that since no resolution plan was received within the stipulated

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**Interpretation:** The interpretation of Section 30(6) and Section 33(1) of the I&B Code,

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**Application:** In this case, the CIRP for IAP Company Pvt. Ltd. failed to produce an approved

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## Parties

- **Judges:** CH. MOHD SHARIEF…; SHRI, NARENDER…
- **Appellants:** Dharmendra…
- **Respondents:** IAP Company…

## Timeline

- **2017-01-01 — Filing of Application…**: Takkshill Enterprises filed an application under Section 9 of the Insolvency & Bankruptcy…
- **2018-02-28 — Admission of Application and Commencement of…**: The application filed by Takkshill Enterprises was admitted, and the Corporate Insolvency…

## 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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