# In the matter of ADDITRI TRADERS PRIVATE LIMITED

> NCLT judgment dated 2024-03-20. Citation: TCN-2024-NCLT-02010. The case involves a company petition filed under Section 54(1) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Mar 2024
- **Citation:** TCN-2024-NCLT-02010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/additri-traders-private-limited-700faf70

## Summary

### Background

The case involves a company petition filed under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, by Additri Traders Private Limited, seeking voluntary liquidation. An application was previously filed to initiate the Corporate Insolvency Resolution Process (CIRP) against Additri Traders by Katyayan Mercantile and Trading Private Limited under Section 9 of the IBC, which was allowed on 2023-06-15. Sachin Dharmendra Jain was appointed as the Resolution Professional. The Committee of Creditors (CoC) decided to dissolve the Corporate Debtor due to the absence of assets. Public announcements were made as per IBBI regulations, and the CoC was constituted with Latyaya Mercantile as the sole operational creditor.

## Facts

Additri Traders Private Limited filed a company petition under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, seeking voluntary liquidation. Previously, Katyayan Mercantile and Trading Private Limited initiated CIRP against Additri Traders under Section 9 of the IBC, which was approved on 2023-06-15, appointing Sachin Dharmendra Jain as the Resolution Professional. The second meeting of the CoC on 2023-10-30 revealed that Additri Traders had no movable or immovable assets. Consequently, the CoC resolved to dissolve the company under Section 54 of the IBC. Public announcements were made in newspapers on 2023-08-23, and the CoC consisted solely of Latyaya Mercantile. The audited balance sheet indicated that the company's movable assets had turned into debris,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Additri Traders Private Limited, should be dissolved under Section 54 …

**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 the Corporate Debtor had no assets to liquidate and that 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 court applied Section 54 to the facts presented, noting that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** MS KATYAYAN…
- **Respondents:** Additri Traders…

## Timeline

- **2023-06-15 — CIRP Init…**: Application to initiate Corporate Insolvency Resolution Process against Additri Traders…
- **2023-10-30 — CoC Meet…**: Second meeting of the Committee of Creditors (CoC) of the Corporate Debtor was held,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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