# In the matter of VTIL (India) Limited CA No. 124-2019 in Company Petition No. (IB)-989(ND)-2018

> NCLT judgment dated 2019-08-08. Citation: TCN-2019-NCLT-02033. The case involves an application filed by the Resolution Professional under Section 33(1) of…

- **Court:** NCLT
- **Order date:** 8 Aug 2019
- **Citation:** TCN-2019-NCLT-02033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vtil-india-limited-ca-no-124-2019-in-company-petition-no-ib-989nd-2018-9a84dc26

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, VTL (India) Limited. The operational creditor, Mr. Naveen Malhotra, had previously filed an application under Section 9 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, which was admitted by the tribunal on 2018-09-27. Mr. Ashish Singh was appointed as the Interim Resolution Professional (IRP).

## Facts

Mr. Naveen Malhotra, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against VTL (India) Limited, the corporate debtor. The application was admitted on 2018-09-27. The corporate debtor had significant loans from Canara Bank and State Bank of India, but its balance sheets showed no tangible or intangible assets. The financial creditors did not submit claims. Mr. Malhotra's claim led to the formation of the Committee of Creditors (CoC), which was later reconstituted. Two registered valuers assessed the fair value of the corporate debtor's assets as NIL. A liquidation application was initially dismissed due to lack of CoC approval. The CIRP period of

…

## Issues and analysis

### Issue 1: Whether the corporate debtor, VTL (India) Limited, should be liquidated under Section 33(1) of the …

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

…

**Reasoning:** The court reasoned that the CIRP period of 180 days had expired on 2019-03-26, and no

…

**Interpretation:** Section 33(1) is interpreted to mean that if a resolution plan is not received

…

**Application:** In this case, the CIRP period expired without a resolution plan, triggering the

…

## Parties

- **Judges:** DEEPTI M…; HEMANT KUMAR…
- **Appellants:** Naveen Ma…
- **Respondents:** VTL (India)…

## Timeline

- **2018-09-27 — CIRP Init…**: Application under Section 9 of IBC filed…
- **2018-09-29 — Public Annou…**: Interim Resolution Professional made…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/vtil-india-limited-ca-no-124-2019-in-company-petition-no-ib-989nd-2018-9a84dc26