# In the matter of Vasan Construction Company Pvt. Ltd. MA-85-2020 in CP-1398-IB-2018

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00580. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasan-construction-company-pvt-ltd-ma-85-2020-in-cp-1398-ib-2018-71cfde74

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking liquidation of the Corporate Debtor, Vasan Construction Company Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated after a petition filed by a financial creditor was admitted by the Tribunal. An Interim Resolution Professional (IRP) was appointed, and a moratorium was declared. The IRP convened six Committee of Creditors (CoC) meetings. Despite three publications calling for Expressions of Interest (EoIs) from prospective Resolution Applicants, none were received. The CIRP period was extended by 90 days, but the response remained nil. The CoC resolved to liquidate the Corporate Debtor. The fair value and liquidation value

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## Facts

Vasan Construction Company Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following the admission of a petition by a financial creditor. A.R. Ramasubramania Raja was appointed as the Interim Resolution Professional (IRP). The IRP convened six meetings of the Committee of Creditors (CoC). Three publications were made inviting Expressions of Interest (EoIs) for resolution plans, but no responses were received. The CIRP period was extended by 90 days, but still no EoIs were filed. The CoC resolved to liquidate the Corporate Debtor. The fair value and liquidation value of the Corporate Debtor were assessed. The IRP filed an application under Section 33(2) of the IBC seeking liquidation and appointment as the liquidator. The Tribunal noted that the

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## Issues and analysis

### Issue 1: Whether the application for liquidation under …

**Ratio:** Section 33(2) of the IBC allows for liquidation when no resolution plan is received or

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**Reasoning:** The Tribunal considered that despite multiple invitations for EoIs, no resolution plan

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**Interpretation:** Section 33(2) provides the legal basis for liquidation when resolution efforts

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**Application:** Given the absence of a resolution plan and the CoC's decision, Section 33(2)

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** A.R.Ramasubramania…
- **Respondents:** Vasan Construction…; SEC 33(2)…

## Timeline

- **2018-01-01 — CIRP Init…**: CIRP initiated based on a petition…
- **2019-04-06 — IRP Appoi…**: Appointment of Interim Resolution…

## 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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