# In the matter of Visuwam Auto Spares Private Limited MA-127-IB-2018 In CP-546-(IB)-2017

> NCLT judgment dated 2018-06-06. Citation: TCN-2018-NCLT-01321. The case involves an application under Section 33(1)(a) and Section 60 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 Jun 2018
- **Citation:** TCN-2018-NCLT-01321
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/visuwam-auto-spares-private-limited-ma-127-ib-2018-in-cp-546-ib-2017-ab4fef60

## Summary

### Background

The case involves an application under Section 33(1)(a) and Section 60 of the Insolvency and Bankruptcy Code, 2016, for the liquidation of M/s. Visuwam Auto Spares Private Limited. The Insolvency and Bankruptcy Board of India (IBBI) recommended the name of the applicant as Interim Resolution Professional (IRP). The Tribunal appointed the applicant as an Interim Resolution Professional by order dated 31.10.2017. The Committee of Creditors (COC) agreed to the continuation of the Interim Resolution Professional as Resolution Professional. The COC approached the Tribunal for an extension of time for the CIRP, which was granted until 04.02.2018, and further extended for 90 days from 04.02.2018. The claims of debt received and admitted in respect of the Corporate Debtor

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## Facts

M/s. Visuwam Auto Spares Private Limited, the Corporate Debtor, was incorporated on 24.05.2001. The company availed financial assistance from the Bank of India, Kurichie IE SME Branch, Coimbatore. The company defaulted on payment of interest and repayment of principal. The Bank of India took possession of the Registered Office premises on 05.01.2017 under Section 13(4) of the SARFAESI Act, 2002. A paper advertisement was issued inviting Expression of Interest, but no resolution plan was received. The COC resolved to liquidate the business of the Corporate Debtor. The tenure of the CIRP expired on 04.05.2018. The estimated liquidation value of the Company would be approximately Rs.1.5 lakhs, as against the total bank dues of Rs.6.53 Crores. The COC opted for liquidation

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Visuwam Auto Spares Private Limited, should be liquidated under …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 allows for liquidation when

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**Reasoning:** The Committee of Creditors (COC) determined that no resolution plan was viable for the

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**Interpretation:** Section 33(1)(a) provides a legal basis for liquidation when resolution efforts

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**Application:** Given the absence of a resolution plan and the expiration of the CIRP period,

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Shri. Balakrishnan…
- **Respondents:** M/s. Visuwam Auto…

## Timeline

- **2001-05-24 — Incorporation of…**: M/s. Visuwam Auto Spares…
- **2017-01-05 — Possession of…**: Bank of India took possession of the Registered Office premises under Section 13(4) of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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