# In the matter of Wig Brothers Constructions Private Limited CA-139--C-III-ND-2019 in CP (IB)-614-ND-2017

> NCLT judgment dated 2019-11-27. Citation: TCN-2019-NCLT-00432. The case pertains to the insolvency resolution of Wig Brothers Construction Private Limited.…

- **Court:** NCLT
- **Order date:** 27 Nov 2019
- **Citation:** TCN-2019-NCLT-00432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wig-brothers-constructions-private-limited-ca-139-c-iii-nd-2019-in-cp-ib-614-nd-9b1f31b2

## Summary

### Background

The case pertains to the insolvency resolution of Wig Brothers Construction Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 9 of the I&B Code, 2016, by an Operational Creditor. Aditya Agarwal was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The IRP took over the management, issued newspaper publications inviting claims from creditors, and constituted the Committee of Creditors (CoC). However, due to the company's poor financial state, lack of updated financials, and negative net worth, the CoC recommended liquidation.

## Facts

Wig Brothers Construction Private Limited underwent Corporate Insolvency Resolution Process (CIRP) following an application under Section 9 of the I&B Code by an Operational Creditor. Aditya Agarwal was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The IRP took over the management and constituted a Committee of Creditors (CoC). The company's registered office was closed, and audit reports for financial years 2016-17 and 2017-18 were delayed. The RP was unable to verify claims due to a lack of necessary documents. The CoC was informed that the company had incurred significant losses, resulting in a negative net worth. The CoC recommended liquidation due to the company's poor financial state and lack of revival

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Wig Brothers Construction Private Limited, should be liquidated due …

**Ratio:** Section 33 of the I&B Code, 2016, allows the Adjudicating Authority to order

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**Reasoning:** The court reasoned that since no resolution plan was received within the stipulated time

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**Interpretation:** Section 33(1) of the I&B Code provides a clear directive for liquidation

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**Application:** In this case, the CIRP failed, no resolution plan was received, and the CoC

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## Parties

- **Judges:** CH. MOHD SHARIEF…; K.K. V…
- **Appellants:** Aditya Ag…
- **Respondents:** Wig Brothers…
- **Advocates:** Prashant…; Joseph Po…; +2 more

## Timeline

- **2017-01-01 — CP/IB/614/ND/2…**: CP/IB/614/ND/2017 filed under Section 33(1) AND 34(3) of the Insolvency and Bankruptcy…
- **2018-07-09 — Order Admitting…**: The application under Section 9 of the…

## 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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