# In the matter of Kyati Metals and Trading Private Limited

> NCLT judgment dated 2023-07-07. Citation: TCN-2023-NCLT-02611. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Kyati…

- **Court:** NCLT
- **Order date:** 7 Jul 2023
- **Citation:** TCN-2023-NCLT-02611
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kyati-metals-and-trading-private-limited-e1ac138c

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Kyati Metals and Trading Private Limited. The CIRP was initiated, a moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. Subsequently, the Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor due to a lack of active interest in the market and no scope for business revival. An application was filed seeking liquidation, which was approved, and the IRP was appointed as the Liquidator.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Kyati Metals and Trading Private Limited. An order was passed on 2021-01-18, declaring a moratorium and appointing CA S Prabhu as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) resolved on 2021-08-26 to liquidate the Corporate Debtor due to a lack of market interest and business revival prospects. The IRP was appointed as the Liquidator to manage the liquidation process. An application was filed seeking liquidation, which was approved on 2021-11-22. The Liquidator discharged duties under the IBC 2016, including issuing a public announcement on 2021-12-04, verifying claims, and preparing a preliminary report. The company had no immovable/movable assets (excluding

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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 and circumstances of the case, including the liquidator's

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

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**Application:** In this case, the liquidator had completely liquidated the assets of Kyati

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## Parties

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

## Timeline

- **2021-01-18 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against Kyati Metals and Trading…
- **2021-08-26 — CoC Resolution for…**: Committee of Creditors resolved to liquidate the Corporate Debtor due to lack of market…

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