# In the matter of Vadali Infotech Private Limited M.A. 3261 of 2019 in C. P. No. 4463 of 2018

> NCLT judgment dated 2021-06-30. Citation: TCN-2021-NCLT-01889. The case involves an application filed by the Resolution Professional, Mr. Naren Sheth, seeking…

- **Court:** NCLT
- **Order date:** 30 Jun 2021
- **Citation:** TCN-2021-NCLT-01889
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vadali-infotech-private-limited-ma-3261-of-2019-in-c-p-no-4463-of-2018-af38b26d

## Summary

### Background

The case involves an application filed by the Resolution Professional, Mr. Naren Sheth, seeking the liquidation of Vadali Infotech Pvt. Ltd. under Section 33 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor was admitted into CIRP vide order dated 12.03.2019. The CoC unanimously decided to liquidate the Corporate Debtor due to the absence of a viable resolution plan and realizable assets. The insolvency process was ending on 7th September 2019.

## Facts

Vadali Infotech Pvt. Ltd. was undergoing Corporate Insolvency Resolution Process (CIRP). Mr. Naren Sheth was appointed as the Resolution Professional (RP). The CIRP was initiated based on a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Zicom Electronic Security System Limited, an Operational Creditor. The Committee of Creditors (CoC) convened four meetings. The RP attempted to recover outstanding trade receivables from Digizone Technologies Pvt. Ltd. and Soru Technologies Pvt. Ltd., amounting to Rs. 1.04 Crores and Rs. 9.12 Crores respectively. However, both Digizone and Soru had filed applications for CIRP. The RP informed the CoC that there were no assets in Digizone Technologies Pvt. Ltd. and Soru Technologies Pvt. Ltd. The CoC

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Vadali Infotech Pvt. Ltd., should …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in deciding the

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**Reasoning:** The court observed that the CoC, with a 100% majority, decided to liquidate the Corporate

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**Interpretation:** Section 33 of the IBC is interpreted to mean that the Adjudicating Authority

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**Application:** In this case, the CoC unanimously decided to liquidate Vadali Infotech Pvt.

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Naren S…
- **Respondents:** Vadali Infotech…; Vadali Infotech…
- **Advocates:** Aswani P…

## Timeline

- **2018-01-01 — Company Pe…**: Company Petition (IB)…
- **2019-03-12 — Admission of…**: Tribunal admitted the petition…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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