# In the matter of One World Travel Solutions Ltd. (IB)-1343(PB)-2018

> NCLT judgment dated 2021-02-16. Citation: TCN-2021-NCLT-03036. The Resolution Professional (RP) filed an application seeking an order for liquidation based on…

- **Court:** NCLT
- **Order date:** 16 Feb 2021
- **Citation:** TCN-2021-NCLT-03036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/one-world-travel-solutions-ltd-ib-1343pb-2018-6fcd9918

## Summary

### Background

The Resolution Professional (RP) filed an application seeking an order for liquidation based on a resolution passed by the Committee of Creditors (CoC) in its 9th meeting held on November 26, 2020. Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on December 3, 2019, with admitted claims aggregating to ₹23,53,55,373. The RP filed an application under Section 19(2) of the Insolvency & Bankruptcy Code (IA-985/2020) due to the lack of cooperation from the erstwhile directors. Despite inviting Expressions of Interest, the prospective applicants' forms did not meet the eligibility criteria set by the CoC, leading the CoC to direct the RP to file an application for a liquidation order.

## Facts

The Resolution Professional (RP) filed an application seeking liquidation of One World Travel Solutions Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2019-12-03, with admitted claims of ₹23,53,55,373. The erstwhile directors did not cooperate, leading to a Section 19(2) application. The CoC directed the RP to file for liquidation on 2020-11-26, as no resolution plan was approved and a one-time settlement failed. The RP, Sandeep Goel, was appointed on 2020-02-17. The corporate debtor did not submit financial statements to the ROC since 2012. The corporate debtor has assets worth ₹1,38,16,322, including vehicles worth ₹10,08,721, whose whereabouts are unknown. A one-time settlement proposal was considered but not finalized. The CoC was informed

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed given the failure …

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

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**Reasoning:** The court reasoned that since the CoC had failed to approve a resolution plan or achieve

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if the CoC is unable to

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**Application:** In this case, the CoC failed to approve a resolution plan or reach a one-time

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## Parties

- **Judges:** B.S.V. Prakash…; HEMANT KUMAR…
- **Appellants:** Bank of B…
- **Respondents:** One World Travel…
- **Advocates:** Rishabh Tr…

## Timeline

- **2019-12-03 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2020-02-17 — RP Appoin…**: Mr. Sandeep Goel was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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