# In the matter of Valaya Clothing Pvt. Ltd. IA-5316-2020 in CP (IB)-905(ND)-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03236. The case originates from an application (IA-5316/2020) filed in CP (IB)-905(ND)/2019 under…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03236
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/valaya-clothing-pvt-ltd-ia-5316-2020-in-cp-ib-905nd-2019-711b51b5

## Summary

### Background

The case originates from an application (IA-5316/2020) filed in CP (IB)-905(ND)/2019 under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The initial Corporate Insolvency Resolution Process (CIRP) was initiated against Valaya Clothing Private Limited following a petition by Sudhir Sales & Services Ltd., an operational creditor, under Section 9 of the IBC, 2016. The CIRP was admitted on 26.11.2019, a moratorium was declared, and Mr. Deepak Maheshwari was appointed as the Interim Resolution Professional (IRP). Several Committee of Creditors (CoC) meetings were held, but no resolution plan was finalized. The applicant sought exclusion of a certain period from the CIRP, direction to CoC members to pay outstanding CIRP costs, initiation of liquidation

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## Facts

Sudhir Sales & Services Ltd., an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Valaya Clothing Private Limited by filing CP (IB)-905(ND)/2019 under Section 9 of the IBC, 2016. The CIRP was admitted on 26.11.2019, leading to a moratorium and the appointment of Mr. Deepak Maheshwari as the Interim Resolution Professional (IRP). Several Committee of Creditors (CoC) meetings were convened, but no resolution plan was successfully formulated. The IRP constituted the CoC consisting of two Operational Creditors and Assessing Authority, Gurgaon. The applicant, Mr. Deepak Maheshwari, filed IA-5316/2020 seeking various reliefs, including the exclusion of a certain period from the CIRP, direction to CoC members to pay outstanding CIRP

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be dissolved …

**Ratio:** Section 54(2) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016, empowers the

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**Reasoning:** The court reasoned that the assets of the Corporate Debtor were negligible, and the

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**Interpretation:** The interpretation of Section 54(2) of the IBC, 2016, allows the Adjudicating

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**Application:** Given the facts that the Corporate Debtor, Valaya Clothing Private Limited, had

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Narender Kumar…
- **Appellants:** Sudhir Sales &…
- **Respondents:** Valaya Clothing…; Valaya Clothing…

## Timeline

- **2019-11-26 — Admission o…**: The Corporate Insolvency Resolution Process (CIRP) against Valaya Clothing Private…
- **2020-02-12 — First CoC M…**: The 1st Committee of Creditors (CoC) Meeting was convened, where Mr. Deepak Maheshwari…

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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/valaya-clothing-pvt-ltd-ia-5316-2020-in-cp-ib-905nd-2019-711b51b5