# In the matter of Aawrun Furnishings Man-Tra Private Limited

> NCLT judgment dated 2023-08-18. Citation: TCN-2023-NCLT-01994. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Aug 2023
- **Citation:** TCN-2023-NCLT-01994
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aawrun-furnishings-man-tra-private-limited-6c040d5d

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Interim Resolution Professional (IRP) of Aawrun Furnishing Man-Tra Private Limited, the Corporate Debtor, seeking liquidation. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on a petition filed by Indiabulls Consumer Finance Limited (Financial Creditor) under Section 7 of the IBC. The IRP was appointed and public announcements were made to invite claims from creditors. However, the IRP faced non-cooperation from the suspended members of the Board of Directors, hindering access to necessary documents and information. Despite efforts to find a resolution applicant, no Expression of Interest (Eol) was

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## Facts

Indiabulls Consumer Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against Aawrun Furnishing Man-Tra Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Shashi Agarwal was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors. The IRP faced non-cooperation from the suspended members of the Board of Directors of the Corporate Debtor, hindering access to necessary documents and information. No Expression of Interest (Eol) was received from prospective resolution applicants. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor. The CIRP period expired on 19/05/2021. The CoC did not confirm the appointment of the IRP as Resolution

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(2) of the Insolvency and Bankruptcy Code, …

**Ratio:** Section 33(2) of the IBC mandates the Adjudicating Authority to pass a liquidation order

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**Reasoning:** The court reasoned that the CoC had approved the liquidation of the Corporate Debtor with

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**Interpretation:** Section 33(2) is interpreted as a mandatory provision that requires the

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**Application:** The CoC approved the liquidation with 83.86% voting share. The CIRP had failed,

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Aawrun Furnishing…
- **Advocates:** Kuldip Ma…; Arun Kumar…

## Timeline

- **2019-10-21 — Initiation…**: Order dated 21/10/2019 in CP(IB)/644(KB)2019 ordered initiation of Corporate Insolvency…
- **2019-10-24 — Public Annou…**: Public Announcements in Form A was published in “Financial Express” (English) and…

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