# In the matter of VGA Developers Private Limited IA No. 2826-ND-2021 in Company Petition No. (IB)-2690(ND)-2019

> NCLT judgment dated 2021-09-01. Citation: TCN-2021-NCLT-01243. The case pertains to an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 1 Sept 2021
- **Citation:** TCN-2021-NCLT-01243
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vga-developers-private-limited-ia-no-2826-nd-2021-in-company-petition-no-ib-2690-9fa88426

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) under Section 33(1) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions for the liquidation of the corporate debtor, VGA Developers Private Limited. The operational creditor, Syndicate Steel Traders, had previously filed an application under Section 9 of the IBC for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. This application was admitted on 2020-01-06, and Mr. Pankaj Kumar Singhal was appointed as the Interim Resolution Professional (IRP). Mr. Pankaj Kumar Singhal was later replaced by Mr. Aishwarya Mohan Gahrana as the RP.

## Facts

Syndicate Steel Traders, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against VGA Developers Private Limited by filing an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2020-01-06. Mr. Pankaj Kumar Singhal was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Mr. Aishwarya Mohan Gahrana. Public announcements were made to invite resolution applicants. The Committee of Creditors (CoC) re-issued Form-G on 2021-02-12, inviting expressions of interest. Only one expression of interest was received from Kundan Care Products Limited, which was subsequently rejected by the CoC due to non-viability with a 93.187% voting share. The CIRP period

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, VGA Developers Private Limited, …

**Ratio:** Section 33 of the IBC, 2016, provides that where the Adjudicating Authority does not

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**Reasoning:** The court reasoned that since no resolution plan was forthcoming despite efforts to find

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that if no resolution plan is

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**Application:** In this case, the CoC rejected the only resolution plan received, and no other

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## Parties

- **Judges:** DEEPTI M…; SUMITA PURK…; +1 more
- **Respondents:** VGA Developers…

## Timeline

- **2019-01-01 — Filing of Application…**: Syndicate Steel Traders filed an application under Section 9 of the IBC, 2016, for…
- **2020-01-06 — Admission of Ap…**: The application filed by Syndicate Steel…

## 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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