# In the matter of Abhiraami Chemicals Limited

> NCLT judgment dated 2024-05-09. Citation: TCN-2024-NCLT-01379. The case pertains to the dissolution of Abhiraami Chemicals Limited under Section 54 of the…

- **Court:** NCLT
- **Order date:** 9 May 2024
- **Citation:** TCN-2024-NCLT-01379
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abhiraami-chemicals-limited-713715a1

## Summary

### Background

The case pertains to the dissolution of Abhiraami Chemicals Limited under Section 54 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated on 2021-10-04. Subsequently, liquidation was ordered on 2022-09-19. The liquidator took steps to recover assets, verify claims, and constitute a Stakeholders Consultation Committee (SCC).

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Abhiraami Chemicals Limited was initiated on 2021-10-04. Liquidation was ordered on 2022-09-19. M.Alagar was appointed as the liquidator. The liquidator made public announcements, verified claims, and constituted a Stakeholders Consultation Committee (SCC) on 2022-11-18. The liquidator opened a bank account for the Corporate Debtor with State Bank of India, Mylapore Branch. The Corporate Debtor had limited assets, including bank balances and deposits. The liquidator recovered Rs. 48,580/- from the Electricity Department of Puducherry. The liquidator's fees were initially set at Rs. 1,60,000/-, but later reduced to Rs. 1,30,000/- due to insufficient funds. The liquidation cost totaled Rs. 2,96,530.32. The liquidator

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Abhiraami Chemicals Limited, 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 tribunal reviewed the liquidator's actions, including asset recovery, claim

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**Interpretation:** Section 54 of the IBC is interpreted to mean that once the liquidation process

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**Application:** In this case, the liquidator had taken all necessary steps to liquidate the

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** M.Ala…
- **Respondents:** Abhiraami…

## Timeline

- **2021-10-04 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2022-09-19 — Liquidation…**: Liquidation of the Corporate Debtor was…

## 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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