# In the matter of Kelvin Recruiters Private Limited IA-2222-ND-2020 in Company Petition No. (IB)- 671(ND)2019

> NCLT judgment dated 2020-11-02. Citation: TCN-2020-NCLT-00315. M/s. Volkswagen Finance Private Limited initiated Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 2 Nov 2020
- **Citation:** TCN-2020-NCLT-00315
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kelvin-recruiters-private-limited-ia-2222-nd-2020-in-company-petition-no-ib-671n-ac366bec

## Summary

### Background

M/s. Volkswagen Finance Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Kelvin Recruiters Private Limited under Section 7 of the IBC, 2016. The application was admitted on 2019-09-17, and Mr. Kamal Agarwal was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement, which was published in newspapers and uploaded on the IBBI website. The IRP constituted a Committee of Creditors (CoC), comprising Volkswagen Finance Private Limited. The IRP was confirmed as Resolution Professional (RP) on 2019-11-01.

## Facts

M/s. Volkswagen Finance Private Limited initiated CIRP against M/s. Kelvin Recruiters Private Limited under Section 7 of the IBC, 2016. The application was admitted on 2019-09-17. Mr. Kamal Agarwal was appointed as IRP and later confirmed as RP. The Corporate Debtor is not a going concern, has no registered office, absconding Suspended Directors, and no employees. The CoC decided not to extend the CIRP period and resolved to liquidate the Corporate Debtor with 100% voting share. The RP filed a written communication to act as Liquidator. The NCLT accepted the CoC's resolution and ordered the liquidation of the Corporate Debtor. Mr. Kamal Agarwal was appointed as Liquidator.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor should be allowed under Section …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass an order

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**Reasoning:** The CoC, comprising the sole financial creditor, Volkswagen Finance Private Limited,

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**Interpretation:** Section 33(2) of the IBC, 2016, provides the legal basis for the Adjudicating

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**Application:** In this case, the CoC's decision to liquidate the corporate debtor was based on

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Volkswagen…
- **Respondents:** Kelvin Recruiters…

## Timeline

- **2019-09-17 — Application A…**: Application under Section 7 of IBC, 2016, filed by Volkswagen Finance Private Limited…
- **2019-09-25 — Public Annou…**: Public announcement made by the Interim Resolution Professional (IRP) in newspapers and…

## 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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