# In the matter of Velohar Infra Private Limited MA-524A-2019 in CP-114-IB-2018

> NCLT judgment dated 2019-06-12. Citation: TCN-2019-NCLT-02940. The application was filed under section 33(2) of the IBC, 2016. The Company Petition was…

- **Court:** NCLT
- **Order date:** 12 Jun 2019
- **Citation:** TCN-2019-NCLT-02940
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/velohar-infra-private-limited-ma-524a-2019-in-cp-114-ib-2018-6ca24559

## Summary

### Background

The application was filed under section 33(2) of the IBC, 2016. The Company Petition was admitted on 29.08.2018. The Resolution Professional (RP) was appointed. The Committee of Creditors (CoC) was constituted based on the claim collation done by the RP. Valuers were appointed to arrive at the liquidation value of the company. The RP determined the liquidation value as ₹20 Crores. A resolution plan valued the company as ₹1.50 Crores, but the CoC rejected the plan. In the same CoC meeting, a resolution was unanimously passed suggesting liquidation of the Corporate Debtor Company.

## Facts

The application was filed under section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Debtor is M/s. Velohar Infra Private Limited. The Company Petition was admitted on 29.08.2018. Mr. M. Murugesan was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) was constituted. Valuers were appointed to determine the liquidation value, which was assessed at ₹20 Crores. A resolution plan valued the company at ₹1.50 Crores, but the CoC rejected it. Subsequently, the CoC unanimously passed a resolution suggesting liquidation. The RP is now appointed as the liquidator.

## Issues and analysis

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

**Ratio:** Section 33(2) of the IBC, 2016 allows for the initiation of liquidation proceedings based

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**Reasoning:** The court considered the CoC's decision to opt for liquidation after rejecting the

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** The court applied Section 33(2) to the facts of the case, noting that the CoC

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M.Murug…
- **Respondents:** Velohar Infra…

## Timeline

- **2018-08-29 — Admission of Company…**: The Company Petition…
- **2019-05-16 — CoC Resol…**: The CoC passed a resolution…

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