# In the matter of Funbars Hospitality Private Limited IA-1011-2022 in (IB)-642(ND)2020

> NCLT judgment dated 2023-04-19. Citation: TCN-2023-NCLT-03720. The case involves an application (IA-1011/2022) where the Applicant/RP submitted that in…

- **Court:** NCLT
- **Order date:** 19 Apr 2023
- **Citation:** TCN-2023-NCLT-03720
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/funbars-hospitality-private-limited-ia-1011-2022-in-ib-642nd2020-a48d59a0

## Summary

### Background

The case involves an application (IA-1011/2022) where the Applicant/RP submitted that in response to the publication of Form-G, two parties expressed interest in the revival of the Corporate Debtor (CD), but no concrete plan or proposal was received. The CoC passed a resolution on 24.01.2022 with a 100% voting share to order the liquidation of the CD. The CIRP had commenced on 03.08.2021, and more than 330 days had passed since then.

## Facts

M/s. Candy Enterprises Private Limited initiated a corporate insolvency resolution process (CIRP). Form-G was published, inviting resolution plans for the revival of the Corporate Debtor (CD). Two parties expressed interest, but no concrete resolution plan was submitted. The Committee of Creditors (CoC) passed a resolution on 24.01.2022 with 100% voting share to liquidate the CD. The CIRP commenced on 03.08.2021, and more than 330 days have passed. Mr. Anil Tayal consented to act as the Liquidator. The CD is now ordered to be liquidated under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.

## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor should be ordered given the absence of a resolution …

**Ratio:** When no resolution plan is received and the CIRP period has exceeded a reasonable

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**Reasoning:** The court reasoned that despite the publication of Form-G and the expression of interest

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**Interpretation:** The interpretation of the IBC, 2016, is that if the CIRP does not result in a

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**Application:** In this case, the absence of a resolution plan and the passage of more than 330

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** M/s. Candy…
- **Respondents:** Candy Enterprises…; M/s. Funbars…

## Timeline

- **2021-08-03 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2022-01-24 — CoC Resol…**: Committee of Creditors (CoC) passed a resolution with 100% voting share to order the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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