# In the matter of AMW Commercial Vehicle Applications Private Limited

> NCLT judgment dated 2024-10-25. Citation: TCN-2024-NCLT-00345. The application was filed by the Resolution Professional (RP) of AMW Commercial Vehicle…

- **Court:** NCLT
- **Order date:** 25 Oct 2024
- **Citation:** TCN-2024-NCLT-00345
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/amw-commercial-vehicle-applications-private-limited-99e330eb

## Summary

### Background

The application was filed by the Resolution Professional (RP) of AMW Commercial Vehicle Applications Limited, the Corporate Debtor, seeking liquidation. SREI Equipment Finance Limited, the Financial Creditor, had initiated CIRP against the Corporate Debtor under Section 7 of the IBC due to default in payment obligations. The CIRP was admitted on 2022-07-11, and the Applicant was appointed as the IRP. Public announcement was made on 2022-07-28. The CoC initially comprised a single Financial Creditor, later joined by an Operational Creditor. Despite attempts to find a resolution applicant, the CoC ultimately resolved to liquidate the Corporate Debtor in its 11th meeting on 2023-04-19.

## Facts

SREI Equipment Finance Limited initiated CIRP against AMW Commercial Vehicle Applications Limited under Section 7 of IBC due to payment defaults. The CIRP was admitted on 2022-07-11, and Avinash Ambikaprasad Shukla was appointed as the IRP. A public announcement was made on 2022-07-28. The CoC initially had one Financial Creditor and later included an Operational Creditor. The first CoC meeting was on 2022-08-23, where the applicant was appointed as RP. An Expression of Interest (EoI) was published, and two prospective resolution applicants (Nakshtra Corporates Advisors Limited and Shanti G D Ispat and Power Private Limited) submitted EOIs. The sole Financial Creditor expressed concerns about the resolution applicants' industry similarity. A revised Form-G was

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, AMW Commercial Vehicle …

**Ratio:** The decision to approve the liquidation application rests on the CoC's resolution and

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**Reasoning:** The court considered the CoC's decision to liquidate the Corporate Debtor due to the

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**Interpretation:** The IBC allows for liquidation as a last resort when resolution efforts fail.

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**Application:** In this case, the CoC's decision to liquidate was based on the failure of

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Avinash Ambikapras…
- **Respondents:** AMW Commercial…; SREI Equipment…

## Timeline

- **2022-07-11 — CIRP Admi…**: CIRP initiated against AMW Commercial Vehicle Applications Limited and admitted by the…
- **2022-07-28 — Public Annou…**: Public announcement made regarding the commencement of CIRP against AMW Commercial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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