# In the matter of Efferent Realestate Private Limited

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00976. The case involves an application (IA-1526/2021) filed by Mr. Gaurav Katiyar, the Resolution…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00976
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/efferent-realestate-private-limited-f164586d

## Summary

### Background

The case involves an application (IA-1526/2021) filed by Mr. Gaurav Katiyar, the Resolution Professional (RP) of M/s. Efferent Realestate Private Limited (Corporate Debtor), seeking initiation of liquidation proceedings under Section 33 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by Ms. Divya Sharma, a Financial Creditor, under Section 7 of the Code. The CIRP period expired, and no resolution plan was received. The sole member of the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor. However, the Financial Creditor later expressed her inability to continue with the liquidation proceedings and pay the CIRP expenses.

## Facts

Ms. Divya Sharma, a Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Efferent Realestate Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the application on 20.12.2019 and appointed an Interim Resolution Professional (IRP), who was later appointed as the Resolution Professional (RP). The IRP made a public announcement for claims and received one claim from Financial Creditors aggregating Rs. 94 Lakhs. The RP convened three meetings of the Committee of Creditors (CoC). Due to non-cooperation from ex-management, lack of credible financial information, and absence of audited financial statements, the RP could not prepare an information memorandum or

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## Issues and analysis

### Issue 1: Whether the application filed by the Resolution Professional seeking liquidation of the Corporate …

**Ratio:** The Adjudicating Authority has the power to dismiss an application if the applicant

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**Reasoning:** The Financial Creditor expressed her inability to continue with the liquidation process

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**Interpretation:** This demonstrates the court's discretion to dismiss applications when the

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**Application:** The application for liquidation was dismissed as withdrawn due to the Financial

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Gaurav Ka…
- **Respondents:** EFFERENT REALESTAT…; Anubhav M…

## Timeline

- **2019-12-20 — CIRP Init…**: Adjudicating Authority admitted the application and initiated CIRP against the Corporate…
- **2019-12-29 — Public Annou…**: The IRP made a public announcement for…

## Legal provisions

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

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