# In the matter of Urban Transit Private Limited IA-1314-MB-2020 IN CP-1807-I&BP-2019

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02353. The Resolution Professional filed an application seeking liquidation under Section 31 of the…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/urban-transit-private-limited-ia-1314-mb-2020-in-cp-1807-ibp-2019-70f4a4f3

## Summary

### Background

The Resolution Professional filed an application seeking liquidation under Section 31 of the I&B Code. The Committee of Creditors (CoC) decided in its fourth meeting on 01.07.2020 to file the application for liquidation of the Corporate Debtor. The RP mentioned that COC members were strongly of the view that there is no point in publication of Form G-Expression of interest and RP also understands the view of the COC members that there is no point in searching for a buyer when there is no information of the Corporate Debtor available. Axis Bank and Yes Bank have internal approval to take the Corporate Debtor into Liquidation. The RP apprised the COC that the Holding Company of Urban Transit Private, SCOMI Engineering Bhd is already under liquidation.

## Facts

The Resolution Professional (RP) filed an application seeking liquidation of Urban Transit Private Limited (Corporate Debtor) under Section 31 of the Insolvency and Bankruptcy Code (I&B Code). The Committee of Creditors (CoC) decided in its fourth meeting held on 01.07.2020 to file the liquidation application. The CoC members expressed the view that there was no point in publishing Form G (Expression of Interest) or searching for a buyer due to the lack of available information about the Corporate Debtor. Axis Bank and Yes Bank indicated they had internal approvals to take the Corporate Debtor into liquidation. The RP informed the CoC that the Holding Company of Urban Transit Private, SCOMI Engineering Bhd, was already under liquidation. The CoC approved a fee of

…

## Issues and analysis

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

**Ratio:** The court can approve the liquidation of a Corporate Debtor based on the resolution

…

**Reasoning:** The court considered the resolution passed by the CoC members on 01.07.2020, approving

…

**Interpretation:** The resolution passed by the CoC is a significant factor in the court's

…

**Application:** In this case, the CoC had resolved to liquidate the Corporate Debtor due to the

…

## Parties

- **Judges:** Chandra Bha…; SUCHITRA KANUPARTH…; +1 more
- **Respondents:** Urban Transit…

## Timeline

- **2020-07-01 — CoC Meet…**: The Committee of Creditors (CoC) decided in its fourth meeting to file an application…
- **2021-04-16 — Order Da…**: The Mumbai Bench of the National Company Law Tribunal (NCLT) approved the liquidation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/urban-transit-private-limited-ia-1314-mb-2020-in-cp-1807-ibp-2019-70f4a4f3