# In the matter of Veracious Builders & Developers Pvt. Ltd. I.A. No.08-2020 in C.P.(IB) No. 215-BB-2019

> NCLT judgment dated 2020-01-17. Citation: TCN-2020-NCLT-02291. The case involves an application (I.A.No.08 of 2020) filed in C.P.(IB) No.215/BB/2019 under…

- **Court:** NCLT
- **Order date:** 17 Jan 2020
- **Citation:** TCN-2020-NCLT-02291
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/veracious-builders-developers-pvt-ltd-ia-no08-2020-in-cpib-no-215-bb-2019-3e7a306f

## Summary

### Background

The case involves an application (I.A.No.08 of 2020) filed in C.P.(IB) No.215/BB/2019 under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the liquidation of the Corporate Debtor, Veracious Builders and Developers Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by Reddarrow Communications under Section 7 of the IBC. The Adjudicating Authority admitted the application on 30th July 2019, initiating CIRP and appointing an Interim Resolution Professional (IRP).

## Facts

Reddarrow Communications initiated CIRP against Veracious Builders and Developers Pvt Ltd under Section 7 of IBC, which was admitted on July 30, 2019. Ms. Shirley Mathew filed an application seeking liquidation of Veracious Builders under Section 33(2) of IBC. The Committee of Creditors (CoC), comprising Reliance AIF Management Company Limited and Reliance Nippon Life Asset Management Limited, resolved to liquidate the Corporate Debtor due to the absence of viable business operations and future earnings prospects. The Corporate Debtor had not filed annual returns with the Registrar of Companies after the financial year 2014-2015. The suspended Directors of the Corporate Debtor allegedly sold properties without the consent of the mortgagor. The total liabilities of the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Veracious Builders and Developers Private Limited, should be …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The Committee of Creditors, consisting of Reliance AIF Management Company Limited and

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a corporate debtor

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**Application:** The CoC approved the liquidation of the Corporate Debtor. The Corporate Debtor

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Shirley M…
- **Respondents:** Veracious…; Veracious…; +1 more

## Timeline

- **2019-07-30 — CIRP Init…**: The Adjudicating Authority admitted the application filed by Reddarrow Communications and…
- **2019-09-11 — First CoC M…**: The first meeting of the…

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