# In the matter of Quetzel Furniture Systems Private Limited I.A.No.262-18 In CP (IB) No.138-BB-2017

> NCLT judgment dated 2020-05-29. Citation: TCN-2020-NCLT-01270. The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.…

- **Court:** NCLT
- **Order date:** 29 May 2020
- **Citation:** TCN-2020-NCLT-01270
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/quetzel-furniture-systems-private-limited-iano262-18-in-cp-ib-no138-bb-2017-62342dd8

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Quetzel Furniture Systems Pvt. Ltd. based on a petition filed by M/s. Balaji Timber Depot under Section 9 of the IBC, 2016, due to a default of Rs. 13,41,900. The Adjudicating Authority admitted the case on 18.12.2017, initiating CIRP and appointing Venkata Subbarao Kalva as the Resolution Professional. However, no resolution plan was received, leading to the Corporate Debtor being placed under liquidation on 16.10.2018. The liquidator was required to publish an announcement to creditors. The assets of the Corporate Debtor were sold for Rs. 11,67,500, but the proceeds were insufficient to cover the CIRP and liquidation costs. Discrepancies were found in the assets. The Directors

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## Facts

M/s. Balaji Timber Depot filed a petition against M/s. Quetzel Furniture Systems Pvt. Ltd. under Section 9 of the IBC, 2016, due to a default of Rs. 13,41,900. The Adjudicating Authority admitted the case on 2017-12-18, initiating CIRP and appointing Venkata Subbarao Kalva as the Resolution Professional. The CoC decided to continue the IRP as the Resolution Professional on 2018-01-17. No resolution plan was received, and the Corporate Debtor was placed under liquidation on 2018-10-16. The liquidator received claims from creditors for Rs. 36,14,82,696 and admitted claims for Rs. 9,26,91,611. The assets were sold for Rs. 11,67,500, but the proceeds were insufficient to cover costs. Discrepancies were found in the assets, leading to a police complaint and FIR. The final

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should dissolve the Corporate Debtor, M/s. Quetzel Furniture …

**Ratio:** Section 54 of the Code empowers the Adjudicating Authority to pass an order for the

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**Reasoning:** The Adjudicating Authority considered the liquidator's final report and compliance

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**Interpretation:** Section 54 of the Code is interpreted to mean that once the liquidation process

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**Application:** In this case, the liquidator had completed the liquidation process, filed the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** M/s.Quetzel…

## Timeline

- **2017-12-18 — CIRP Init…**: Adjudicating Authority admitted the case and initiated CIRP against M/s. Quetzel…
- **2018-01-17 — CoC Meet…**: The CoC of the Corporate Debtor decided to continue the IRP as the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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