# In the matter of Devesh Engineers Private Limited

> NCLT judgment dated 2023-08-10. Citation: TCN-2023-NCLT-02093. The Corporate Insolvency Resolution Process (CIRP) was initiated against Devesh Engineering…

- **Court:** NCLT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLT-02093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/devesh-engineers-private-limited-a935baac

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Devesh Engineering Enterprises Private Limited vide order dated 2021-02-19, and a moratorium was declared. An Interim Resolution Professional (IRP) was appointed. Due to the corporate debtor's lack of active market interest and the absence of a viable resolution plan, the Committee of Creditors resolved to liquidate the Corporate Debtor. An application for liquidation was filed and allowed on 2022-06-01, appointing a liquidator to manage the liquidation process.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Devesh Engineering Enterprises Private Limited on 2021-02-19, leading to a moratorium. An Interim Resolution Professional (IRP) was appointed. Due to the absence of a viable resolution plan, the Committee of Creditors resolved to liquidate the Corporate Debtor. The liquidation process commenced on 2022-06-01, with the appointment of a liquidator. The liquidator made public announcements and verified claims. The company's assets were primarily receivables, and the realization proceeds were insufficient to cover all liabilities. The liquidator prepared a final report detailing the liquidation of assets and distribution of proceeds. The liquidator filed an application seeking dissolution of the

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, Devesh Engineering Enterprises …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of a

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**Reasoning:** The Tribunal was satisfied that the liquidation process had been completed as per the

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**Interpretation:** Section 54 of the IBC provides the legal basis for dissolving a corporate

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**Application:** Given that the liquidation process was completed according to the IBC, the

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## Parties

- **Judges:** TELAPROLU…; SH. CHARAN…
- **Appellants:** Mr.K.J.…
- **Respondents:** Devesh Engineering…; Tejaswini…
- **Advocates:** Mayur M…; Divya M…; +2 more

## Timeline

- **2021-02-19 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against Devesh Engineering Enterprises…
- **2021-12-13 — CoC Meet…**: Third Committee of Creditors meeting…

## 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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