# In the matter of Chirag Vyapaar Private Limited

> NCLT judgment dated 2022-08-30. Citation: TCN-2022-NCLT-01212. The case involves an application filed by the Resolution Professional of Chirag Vyapaar Private…

- **Court:** NCLT
- **Order date:** 30 Aug 2022
- **Citation:** TCN-2022-NCLT-01212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chirag-vyapaar-private-limited-69e17890

## Summary

### Background

The case involves an application filed by the Resolution Professional of Chirag Vyapaar Private Limited, the Corporate Debtor, seeking liquidation due to the Committee of Creditors (CoC) passing a resolution with 100% voting share for liquidation. The Corporate Debtor had previously undergone Corporate Insolvency Resolution Process (CIRP) initiated by an order dated 01/04/2022. The CoC recommended liquidation due to the Corporate Debtor's lack of tangible assets and accumulated losses.

## Facts

Rohit Ferro Tech Ltd. is the Operational Creditor. Chirag Vyapaar Private Limited is the Corporate Debtor. CIRP was initiated against the Corporate Debtor on 01/04/2022. Mr. Daulat Ram Jain was appointed as the Interim Resolution Professional. The CoC was duly constituted on 22/04/2022. The CoC, in its 2nd meeting held on 21/05/2022, passed a resolution with 100% voting share for the liquidation of the Corporate Debtor, citing the absence of tangible assets and accumulated losses of approximately Rs. 5.02 Crores as of 31/03/2022 against a Capital Account of Rs. 1.26 Crores. The Resolution Professional, Mr. Daulat Ram Jain, filed an application (IA(IBC)/663(KB)2022) seeking liquidation of the Corporate Debtor. The Resolution Professional has given his consent to act as

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is obligated to order liquidation of the Corporate Debtor under …

**Ratio:** Section 33(1)(a) of the Code mandates that the Adjudicating Authority shall pass an order

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**Reasoning:** The court reasoned that reading Section 33(1)(a) and 33(2) together, the Adjudicating

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**Interpretation:** Section 33 of the IBC is interpreted to mean that if the CoC decides to

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**Application:** In this case, the CoC approved liquidation with 100% voting share, and no

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Respondents:** Chirag Vyapaar…; Rohit Ferro Tech…

## Timeline

- **2022-04-01 — CIRP Init…**: Adjudicating authority ordered initiation…
- **2022-04-05 — Public Annou…**: Public Announcement was published in 'Business…

## 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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