# In the matter of Chalal Parivahan Private Limited I.A. 2304-2021 in Company Petition No. (IB) - 2095-ND-2019

> NCLT judgment dated 2022-12-01. Citation: TCN-2022-NCLT-00277. The case pertains to an application filed by the Resolution Professional, Mr. Nitin Jain, under…

- **Court:** NCLT
- **Order date:** 1 Dec 2022
- **Citation:** TCN-2022-NCLT-00277
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chalal-parivahan-private-limited-ia-2304-2021-in-company-petition-no-ib-2095-nd-d2e050b8

## Summary

### Background

The case pertains to an application filed by the Resolution Professional, Mr. Nitin Jain, under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, M/s Chahal Parivahan Private Limited. The application was filed because 330 days had been completed on 11.04.2021, and no resolution plan had been received. The Corporate Debtor was incorporated on 06.01.2017. The Financial Creditor, M/s Paisalo Digital Limited, a non-banking financial company, had been advancing loans to the Corporate Debtor. The Corporate Debtor defaulted in making payments, leading the Financial Creditor to file a petition under Section 7 of the Code for initiating CIRP. The Tribunal initiated CIRP on 12.02.2020 and appointed the

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## Facts

The Corporate Debtor, M/s Chahal Parivahan Private Limited, was incorporated on 06.01.2017. M/s Paisalo Digital Limited, the Financial Creditor, extended loans to the Corporate Debtor. The Corporate Debtor defaulted on payments, leading the Financial Creditor to initiate CIRP under Section 7 of the IBC. CIRP was initiated on 12.02.2020, and Nitin Jain was appointed as the Interim Resolution Professional. A public announcement was made on 21.03.2020, with a claim submission deadline of 03.04.2020. The sole Financial Creditor's claim amounted to Rs. 2,93,67,359/-. The first CoC meeting occurred on 12.06.2020. The Resolution Professional faced non-cooperation from the suspended management, hindering the CIRP process. The registered office of the Corporate Debtor was found

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1)(a) of the …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation

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**Reasoning:** The CoC approved the resolution to liquidate the Corporate Debtor with a 76.64% voting

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**Interpretation:** Section 33(1)(a) provides a clear legal basis for initiating liquidation when

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**Application:** Given the CoC's approval and the failure of the CIRP process due to the

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Nitin…
- **Respondents:** Chahal Parivahan…; Paisalo Digital…

## Timeline

- **2017-01-06 — Incorporation of…**: The Corporate Debtor, M/s Chahal…
- **2020-02-12 — CIRP Init…**: The Tribunal initiated CIRP of the Corporate Debtor and appointed the applicant as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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