# In the matter of Snehdaxa Infrastructure Pvt. Ltd. & Ors. IA 768-2019 in C.P. (I.B) No. 506-NCLT-AHM-2018

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00231. The case involves an application for the initiation of liquidation of Snehdaxa Infrastructure…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/snehdaxa-infrastructure-pvt-ltd-ors-ia-768-2019-in-cp-ib-no-506-nclt-ahm-2018-690246a5

## Summary

### Background

The case involves an application for the initiation of liquidation of Snehdaxa Infrastructure Pvt Ltd. The Committee of Creditors (COC) resolved to close the Corporate Insolvency Resolution Process (CIRP) and initiate liquidation due to the absence of a viable resolution plan. The COC authorized the Resolution Professional (RP) to file an application for liquidation before the Adjudicating Authority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Snehdaxa Infrastructure Pvt Ltd. The Committee of Creditors (COC) held its 4th meeting on 2019-10-24 and resolved to close the CIRP due to the absence of a viable resolution plan. All members of the COC assented to move an application for the initiation of liquidation. The Resolution Professional (RP) submitted that there was no bank balance available in the Corporate Debtor's bank account for conducting the liquidation process. The COC decided to open a pool account for liquidation expenses. The RP gave his consent to continue as liquidator on 2019-11-16. The COC voted 100% in favor of liquidation. The CIRP period of 270 days was completed on 2019-11-03. The notice was issued to the Suspended

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## Issues and analysis

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

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (IBC) allows for the initiation of

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**Reasoning:** The Adjudicating Authority considered the COC's decision, supported by a 100% vote, to

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**Interpretation:** Section 33 of the IBC is interpreted to permit liquidation when the CIRP fails

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**Application:** Given the COC's unanimous decision and the absence of a resolution plan, the

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## Parties

- **Judges:** Manorama…
- **Appellants:** Nipun S…
- **Respondents:** Snehdaxa Infrastru…

## Timeline

- **2019-10-24 — COC 4th M…**: The COC resolved to close the…
- **2019-11-03 — CIRP Comp…**: 270 days of CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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