# In the matter of Kyati Metals and Trading Private Limited

> NCLT judgment dated 2023-07-07. Citation: TCN-2023-NCLT-02614. The Corporate Insolvency Resolution Process (CIRP) was initiated against Kyati Metals and…

- **Court:** NCLT
- **Order date:** 7 Jul 2023
- **Citation:** TCN-2023-NCLT-02614
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kyati-metals-and-trading-private-limited-b19df7f1

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Kyati Metals and Trading Private Limited. The NCLT declared a moratorium and appointed CA S Prabhu as the Interim Resolution Professional (IRP). A CoC meeting resolved to liquidate the Corporate Debtor due to a lack of active interest in the market and no scope for business revival. The IRP was appointed as the Liquidator to manage the liquidation process, subject to NCLT approval. An application was filed seeking liquidation, and the Tribunal ordered liquidation. The applicant discharged duties under the IBC 2016 and issued a public announcement. Claims were received, verified, and admitted. A list of stakeholders was filed. The applicant prepared a preliminary report containing assets and

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Kyati Metals and Trading Private Limited (Corporate Debtor) following an order dated 2021-01-18. CA S Prabhu was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor on 2021-08-26, as there was no active interest in the market and no scope for business revival. The IRP was appointed as the Liquidator. An application was filed seeking liquidation, and the Tribunal ordered liquidation on 2021-11-22. The Liquidator discharged duties under the IBC 2016 and issued a public announcement on 2021-12-04. Claims were received, verified, and admitted. A list of stakeholders was filed before the Tribunal on 2022-01-08. The

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## Issues and analysis

### Issue 1: Whether the Corporate …

**Ratio:** Section 54 of the IBC lays down the criteria for dissolution of the Corporate Debtor. It

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**Reasoning:** The court considered the facts presented by the Liquidator, including the complete

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

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**Application:** In this case, the Liquidator demonstrated that all assets of Kyati Metals and

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Aryan Structural…
- **Respondents:** Kyati Metals &…

## Timeline

- **2020-01-01 — CP(IB) F…**: CP(IB) No.323/7/HDB/2020…
- **2021-01-18 — CIRP Init…**: Corporate Insolvency Resolution Process was initiated against Kyati Metals and Trading…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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