# In the matter of Abra Motors Private Limited

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02909. The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02909
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/abra-motors-private-limited-f7545f41

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Abra Motors Private Limited. The CIRP was initiated by the Tribunal in IBA/42/2020, with an order dated 2020-05-08. The applicant was appointed as the IRP and later as the RP. During the first Committee of Creditors meeting on 2020-08-03, it was resolved that the Corporate Debtor should be liquidated due to a lack of assets and no scope for business revival. The liquidation was ordered by the Tribunal on 2021-04-16 in IA/1228 (CHE)/2020, and the applicant was appointed as the Liquidator. Public announcements were made on 2021-04-21, inviting claims from stakeholders, with a deadline of 2021-05-19 for submission.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Abra Motors Private Limited was initiated by the Tribunal in IBA/42/2020 with an order dated 2020-05-08. The applicant was appointed as the IRP and later as the RP. During the first Committee of Creditors meeting on 2020-08-03, it was resolved that the Corporate Debtor should be liquidated due to a lack of assets and no scope for business revival. The liquidation was ordered by the Tribunal on 2021-04-16 in IA/1228 (CHE)/2020, and the applicant was appointed as the Liquidator. Public announcements were made on 2021-04-21, inviting claims from stakeholders, with a deadline of 2021-05-19 for submission. Claims were received from various stakeholders, including priority payments, unsecured financial creditors,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Abra Motors Private Limited, should be dissolved under Section 54 of …

**Ratio:** Section 54 of the IBC, 2016, stipulates that where the assets of the corporate debtor

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**Reasoning:** The Tribunal considered the averments made in the application, the final report, and the

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**Interpretation:** Section 54 provides a clear directive for the dissolution of a corporate debtor

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**Application:** In this case, since the assets of Abra Motors Private Limited have been

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** CA. S. P…
- **Respondents:** Abra Motors…

## Timeline

- **2020-05-08 — CIRP Init…**: Tribunal initiated Corporate Insolvency…
- **2020-08-03 — Committee of Creditors…**: First Committee of Creditors meeting…

## 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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