# In the matter of Aakash Lifestyle Pvt. Ltd.

> NCLT judgment dated 2023-08-29. Citation: TCN-2023-NCLT-01862. The case pertains to an application under Section 54 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLT-01862
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aakash-lifestyle-pvt-ltd-5fcd7726

## Summary

### Background

The case pertains to an application under Section 54 of the Insolvency and Bankruptcy Code, 2016, seeking the dissolution of Aakash Lifestyle Pvt. Ltd., the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by the Operational Creditor under Section 9 of the Code. An Interim Resolution Professional (IRP) was appointed, who later surrendered his license, leading to the appointment of Mr. Jatin Mehra as the new IRP. The Committee of Creditors (COC) then appointed the IRP as the Resolution Professional (RP). The RP tried to locate the suspended directors of the Corporate Debtor but was unsuccessful. The last available financial records for the Corporate Debtor were from F.Y. 2012-13,

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## Facts

The Operational Creditor initiated CIRP against Aakash Lifestyle Pvt. Ltd. under Section 9 of the IBC. Mr. Sunil Kumar Bansal was initially appointed as IRP but surrendered his license. Mr. Jatin Mehra was then appointed as IRP and later as RP. The RP could not trace the suspended directors or the Corporate Debtor's office. The last available financial records were from F.Y. 2012-13, and the company was struck off under Section 248(5) of the Companies Act, 2013. The COC approved filing for liquidation under Section 33 of the IBC. The Adjudicating Authority orally directed to proceed directly with dissolution. The COC passed a resolution for dissolution with 100% voting share. There were no assets available for liquidation. The Corporate Debtor was struck off from the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Aakash Lifestyle Pvt. Ltd., should be dissolved under Section 54 of …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of a

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**Reasoning:** The court reasoned that since there were no assets available for liquidation and the

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**Interpretation:** Section 54 is interpreted to mean that if a corporate debtor has no assets and

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**Application:** In this case, the Resolution Professional reported that there were no assets

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Jatin M…
- **Respondents:** AAKASH LIFESTYLE…

## Timeline

- **2019-11-14 — Initiation…**: The Adjudicating Authority directed the initiation of the Corporate Insolvency Resolution…
- **2022-01-03 — Appointment…**: Mr. Jatin Mehra was appointed as the Interim Resolution Professional (IRP) after the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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