# In the matter of Varia Engineering Works Pvt. Ltd. & Ors. IA No. 347 of 2020 in IA No. 362 of 2019 in CP(IB)No. 149-NCLT-AHM-2017

> NCLT judgment dated 2020-07-22. Citation: TCN-2020-NCLT-00991. The case involves an application (IA 347 of 2020) filed in an ongoing corporate insolvency…

- **Court:** NCLT
- **Order date:** 22 Jul 2020
- **Citation:** TCN-2020-NCLT-00991
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/varia-engineering-works-pvt-ltd-ors-ia-no-347-of-2020-in-ia-no-362-of-2019-in-cp-581afe7f

## Summary

### Background

The case involves an application (IA 347 of 2020) filed in an ongoing corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The applicant, Himanshu Prafulchandra Varia (Suspended Management), sought directions from the NCLT to allow them to commence/reinitiate business operations until the company is sold as a going concern. The company is already under liquidation, initiated on August 7, 2019, due to the failure of resolution plans.

## Facts

The corporate insolvency resolution process (CIRP) was initiated against Varia Engineering Works Pvt. Ltd. However, no viable resolution plan was approved, leading to a liquidation order dated August 7, 2019. Subsequently, Himanshu Prafulchandra Varia, the suspended management of the company, filed an application (IA 347 of 2020) seeking permission to resume business operations until the company is sold as a going concern. The application also requested the tribunal to direct the liquidator to sell/transfer the company as a going concern and to defer the segregated sale of the company's assets. The liquidator, Sunil Kumar Agarwal, is overseeing the liquidation process. The NCLT noted that the suspended management filed the application when the liquidation process was

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## Issues and analysis

### Issue 1: Whether the suspended management of a corporate debtor under liquidation has the locus standi to …

**Ratio:** The ratio is that the suspended management of a corporate debtor under liquidation

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**Reasoning:** The court reasoned that once a company is under liquidation, the suspended management

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**Interpretation:** The interpretation is that the IBC intends to transfer control to the

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**Application:** In this case, the suspended management's application was deemed not

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Himanshu Prafulcha…
- **Respondents:** Varia Engineering…; Sunil Kumar…
- **Advocates:** Natasha D…

## Timeline

- **2019-08-07 — Liquidation…**: Order passed to liquidate Varia Engineering Works Pvt. Ltd. due to the failure of…
- **2020-07-22 — Order Del…**: Order delivered on the application (IA 347 of 2020) filed by the suspended management,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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