# In the matter of Archana Motors Private Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01593. The case involves an application for the dissolution of Archana Motors Private Limited, a…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01593
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/archana-motors-private-limited-e449058c

## Summary

### Background

The case involves an application for the dissolution of Archana Motors Private Limited, a Corporate Debtor (CD), which was undergoing liquidation. The liquidation process was initiated by the Tribunal's order dated 2020-01-10, and the applicant was appointed as the liquidator. The liquidation period was extended multiple times. The Stakeholders Consultation Committee (SCC) decided to dissolve the company based on the liquidator's advice. There was a delay in filing the dissolution application due to pending writ petitions in the High Court, leading to a further extension of the liquidation period. Public announcements were made to invite claims, and claims were received and admitted. No valuers were appointed due to the absence of traceable assets, resulting in a nil

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## Facts

Archana Motors Private Limited underwent liquidation, initiated by a Tribunal order on 2020-01-10, with a liquidator appointed. The liquidation period was extended eight times until 2023-10-31. The Stakeholders Consultation Committee (SCC) decided to dissolve the company on 2023-11-16. A delay in filing the dissolution application occurred due to two pending writ petitions in the High Court, resulting in a further extension until 2024-03-13. Public announcements invited claims, totaling Rs. 22,25,91,343.57, with admitted claims of Rs. 21,55,68,800.35. No valuers were appointed due to the absence of traceable assets, resulting in a nil liquidation value. Despite Rs. 24 crore worth of physical assets shown in the FY 2018 balance sheet, no assets were traceable. An

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## Issues and analysis

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

**Ratio:** Section 54(1) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The Tribunal considered the liquidator's report, which stated that all assets of the

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**Interpretation:** Section 54(1) of the IBC mandates the liquidator to apply for dissolution once

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**Application:** In this case, the liquidator demonstrated that all assets of Archana Motors

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## Parties

- **Judges:** Shyam Babu…; T Krishna…
- **Appellants:** ASHOK VELAMUR…
- **Respondents:** ARCHANA MOTORS…

## Timeline

- **2020-01-10 — Liquidation Process…**: Tribunal's order to put the Corporate…
- **2020-01-10 — Liquidator Ap…**: Applicant appointed as…

## 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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