# 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-02036. 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-02036
- **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-acc5f531

## 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 (IB 989(ND)/2018) under Section 9 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. This application was admitted on 2018-09-27, and Mr. Ashish Singh was appointed as the Interim Resolution Professional (IRP). A public announcement was made as per Regulation 6(1) of the CIRP Regulations, 2016.

## Facts

Mr. Naveen Malhotra, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against VTL (India) Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was admitted on 2018-09-27. Mr. Ashish Singh was appointed as the Interim Resolution Professional (IRP). The corporate debtor had significant debts to Canara Bank and State Bank of India, totaling Rs. 12,33,45,528/-, and also had unsecured liabilities. The company's balance sheet showed no tangible assets. Notices regarding CIRP were sent to financial creditors, but no claims were submitted by them. Mr. Malhotra submitted a claim for Rs. 1,25,000/-, and the Office of Commissioner of Custom submitted a claim for Rs 64,44,512/-. The

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## 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

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**Reasoning:** The CIRP period of 180 days expired on 2019-03-26, and no resolution plan was received.

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**Interpretation:** Section 33(1) provides a clear directive for liquidation when the CIRP fails to

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

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## Parties

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

## Timeline

- **2018-09-27 — CIRP Init…**: Application under Section 9 of IBC admitted;…
- **2018-09-29 — Public Annou…**: Public announcement made in…

## 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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