# In the matter of Nakshatra World Limited IA 2392 & 3614 of 2019 In CP (IB) 3872-MB-C-II-2018

> NCLT judgment dated 2021-05-28. Citation: TCN-2021-NCLT-02090. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 28 May 2021
- **Citation:** TCN-2021-NCLT-02090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nakshatra-world-limited-ia-2392-3614-of-2019-in-cp-ib-3872-mb-c-ii-2018-a615e59f

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of the Corporate Debtor, Nakshatra World Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following an order dated 29.01.2019 by the Adjudicating Authority based on a petition filed by ICICI Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Vijay Kumar Garg was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was duly constituted, and the Applicant was appointed as the Resolution Professional. A company petition was filed by the Union of India, Ministry of Corporate Affairs, against the Corporate Debtor seeking recovery of amounts in the financial fraud.

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## Facts

The Corporate Debtor, Nakshatra World Limited, faced Corporate Insolvency Resolution Process (CIRP) initiated by ICICI Bank Limited (Financial Creditor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. Vijay Kumar Garg was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed. The Union of India, Ministry of Corporate Affairs, filed a company petition against the Corporate Debtor seeking recovery of amounts related to financial fraud. An ex parte Injunction Order was passed, preventing the Corporate Debtor from transferring or disposing of assets. The Resolution Professional (RP) was unable to proceed with CIRP effectively because the Corporate Debtor's assets were under the control of authorities. The CoC of

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Nakshatra World Limited, should be …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The CoC, with a majority of 97.09% e-voting, approved the resolution for making an

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

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**Application:** Given the CoC's decision and the circumstances of the case, the Adjudicating

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## Parties

- **Judges:** Harihar Prakash…; RavikumarDu…
- **Appellants:** Vijay Kuma…
- **Respondents:** Nakshatra World…; ICICI Bank…
- **Advocates:** Yashova…

## Timeline

- **2018-01-01 — Company Petiti…**: A Company Petition being CP No. 277 of 2018 filed by Union of India, Ministry of…
- **2018-02-23 — Ex Parte Injunction…**: Tribunal vide Order dated 23.02.2018 passed an ex parte Injunction Order whereby the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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