# In the matter of Virtual Logic Systems Private Limited I.A. No. 274-2020 in C.P. (IB) No. 126-BB-2017

> NCLT judgment dated 2020-08-24. Citation: TCN-2020-NCLT-00795. The case involves the liquidation of M/s. Virtual Logic Systems Private Limited. Initially,…

- **Court:** NCLT
- **Order date:** 24 Aug 2020
- **Citation:** TCN-2020-NCLT-00795
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/virtual-logic-systems-private-limited-ia-no-274-2020-in-cp-ib-no-126-bb-2017-d988b064

## Summary

### Background

The case involves the liquidation of M/s. Virtual Logic Systems Private Limited. Initially, C.P. (IB) No.126/BB/2017 was filed by Mr. K.S. Hiremath under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application was admitted on January 22, 2018, and Mr. Venkata Subbarao Kalva was appointed as Interim Resolution Professional (IRP), later confirmed as Resolution Professional. As no viable resolution plan was received, the Committee approved for initiation of liquidation. The Applicant filed I.A. No.192/2018, under Section 33(1) of the Code seeking an order for Liquidation of the Corporate Debtor. The Tribunal passed an order for liquidation on July 17, 2018, appointing the Applicant as Liquidator. The Liquidator made

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## Facts

Mr. K.S. Hiremath initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Virtual Logic Systems Private Limited under Section 9 of the IBC, 2016, due to a default of Rs.10,63,750/-. The application was admitted on January 22, 2018, and Mr. Venkata Subbarao Kalva was appointed as Interim Resolution Professional (IRP), later confirmed as Resolution Professional. No viable resolution plan was received, leading to the initiation of liquidation. The Liquidator made public announcements for claims from creditors. The liquidation estate was formed as per Section 36 of the Insolvency and Bankruptcy Code, 2016, including tangible and intangible assets. The intangible assets, consisting of intellectual property (software), were not realized during the liquidation

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## Issues and analysis

### Issue 1: Whether the Applicant should be permitted to assign absolute rights over Unsold Intangible Assets- …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the

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**Reasoning:** The court reasoned that the assets of the Corporate Debtor have been completely

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**Interpretation:** This issue involves the interpretation of the powers of the Adjudicating

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**Application:** The court applied the ratio to the specific facts of the case, where the assets

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Venkata Subbarao…
- **Respondents:** M/s. Virtual…

## Timeline

- **2017-01-01 — Initiation…**: C.P. (IB) No.126/BB/2017 was filed by Mr. K.S. Hiremath under Section 9 of the IBC, 2016,…
- **2018-01-22 — Admission of Ap…**: The application was admitted by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36 — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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