# In the matter of Ashoka Design LLP

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02090. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ashoka-design-llp-e837e87c

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Ashoka Design LLP. The Adjudicating Authority directed the initiation of CIRP on November 29, 2023, and appointed Mr. Udit Agarwal as the Interim Resolution Professional (IRP). Subsequently, the Committee of Creditors (CoC) was formed, with Union Bank of India as a member. The RP informed the CoC that the company had no business activity and no fixed assets apart from inventories. Given the lack of financial viability and the inability to attract a suitable resolution, the RP filed an application seeking liquidation of the Corporate Applicant.

## Facts

Ashoka Design LLP faced Corporate Insolvency Resolution Process (CIRP) initiated by an order dated 29 November 2023. Udit Agarwal was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) was formed, including Union Bank of India. The RP reported that the company had no business activity, no fixed assets, and limited inventories. The CoC, with 100% voting share, approved the liquidation of Ashoka Design LLP. The RP then filed an application seeking liquidation, stating that there was no scope for resolution. The Adjudicating Authority considered the application and ordered the liquidation of the Corporate Applicant, appointing Brinda Bidasaria as the Liquidator.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the application for liquidation of the Corporate …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the CoC approved the liquidation with a 100% voting share,

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**Interpretation:** Section 33(2) provides a clear framework for liquidation when the CoC,

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**Application:** In this case, the CoC's unanimous approval of liquidation, coupled with the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Ashoka Desi…

## Timeline

- **2023-11-29 — Initiation…**: The Adjudicating Authority directed the initiation of the Corporate Insolvency Resolution…
- **2023-12-29 — First CoC M…**: The first meeting of the Committee of Creditors (CoC) was held, and Mr. Udit Agarwal was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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