# In the matter of Khati Designs Private Limiteid

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02489. The Interim Application (IA) was filed by the Liquidator of Khati Design Private Limited under…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02489
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khati-designs-private-limiteid-304e292d

## Summary

### Background

The Interim Application (IA) was filed by the Liquidator of Khati Design Private Limited under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the dissolution of the company. The Adjudicating Authority had previously admitted an application under Section 9 of the IBC filed by the Operational Creditor against the Corporate Debtor. The Committee of Creditors (CoC) had dissented on the proposal to re-issue Form-G and extend the date of submission of the Expression of Interest (EOI) and proposed for the liquidation of the Corporate Debtor. The Adjudicating Authority commenced the liquidation process and appointed the Applicant as the Liquidator.

## Facts

The Liquidator of Khati Design Private Limited filed an application for the dissolution of the company under Section 54(1) of the IBC. An earlier application under Section 9 of the IBC, filed by Sahil Agarwal (Operational Creditor), had been admitted against Khati Design Private Limited (Corporate Debtor). The Committee of Creditors (CoC) rejected a proposal to re-issue Form-G and instead proposed liquidation. The Adjudicating Authority initiated the liquidation process and appointed the Liquidator. The Liquidator received claims from financial and operational creditors, constituted a Stakeholders Consultation Committee (SCC), and conducted an E-Auction for the sale of the Corporate Debtor's assets. Rohit International Proprietor Rohit Kumar was declared the successful

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the IBC should …

**Ratio:** Section 54 of the IBC allows the Liquidator to approach the Adjudicating Authority for

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**Reasoning:** The court reasoned that the assets of the Corporate Debtor have been completely

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**Interpretation:** Section 54 of the IBC is interpreted to mean that once the assets of a

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Sahil Ag…
- **Respondents:** KHATI DESIGNS…; Alon M…

## Timeline

- **2019-09-27 — Admission of Application…**: The Adjudicating Authority admitted the Application under Section 9 of the IBC, filed by…
- **2019-11-18 — Invitation for…**: Expression of Interest ('EOI') was invited for submission of the resolution plan for the…

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