# In the matter of Rainbow Infrabuild Pvt. Ltd.

> NCLT judgment dated 11 Jun 2024. Citation: TCN-2024-NCLT-01195. The present application was filed by Mr. Janak Jagjivan Shah, the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 11 Jun 2024
- **Citation:** TCN-2024-NCLT-01195
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rainbow-infrabuild-pvt-ltd-70b244b9

## Summary

### Background

The present application was filed by Mr. Janak Jagjivan Shah, the Resolution Professional (RP) of Rainbow Infrabuild Pvt. Ltd., seeking the dissolution of the Corporate Debtor (CD) under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the IBBI (Liquidation Process) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The application was prompted by the Corporate Debtor's lack of realizable assets and the Committee of Creditors' (CoC) decision to proceed directly to dissolution without undergoing a full liquidation process, to avoid incurring additional expenses.

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## Facts

M/s AVB Global Ventures Pvt. Ltd., a financial creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against Rainbow Infrabuild Pvt. Ltd. by filing an application under Section 7 of the IBC, 2016 on March 17, 2023. The application was based on a default in payment of outstanding dues amounting to Rs. 2,38,95,357/-. The Corporate Debtor (CD) is a private limited company incorporated under the Companies Act, 1956.

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## Issues and analysis

### Issue 1: Whether the Resolution Professional can apply for early dissolution of the Corporate Debtor without…

**Ratio:** Only a formally appointed Liquidator, after the commencement of the liquidation process…

**Reasoning:** The tribunal reasoned that **Section 54 of the IBC, 2016**, explicitly states that an…

**Interpretation:** The tribunal interpreted Section 54 of the IBC and Regulation 14 of the IBBI…

**Application:** In this case, the applicant was the Resolution Professional, and no order for…

## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Advocates:** Dheeraj…

## Timeline

- **March 17, 2023 — CIRP Applicati…**: M/s AVB Global Ventures Pvt. Ltd. filed an application under Section 7 of the IBC, 2016,…
- **November 9, 2023 — CIRP Admitted and IRP…**: The tribunal admitted the petition and appointed Mr. Janak Jagjivan Shah as Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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