# In the matter of Lord Vrindavanbihari Trading Pvt. Ltd.

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01380. The application was filed by the Resolution Professional (RP) seeking liquidation of the…

- **Court:** NCLT
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-NCLT-01380
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lord-vrindavanbihari-trading-pvt-ltd-a030420a

## Summary

### Background

The application was filed by the Resolution Professional (RP) seeking liquidation of the Corporate Guarantor, Lord Vrindavanbihari Trading Pvt. Ltd., due to the impossibility of resolution. The Adjudicating Authority, on 30.01.2023, initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Guarantor based on a petition filed by the Financial Creditor, Bank of Baroda, under section 7 of the Insolvency and Bankruptcy Code, 2016. Mr. Sajjan Kumar Dokania was appointed as the Interim Resolution Professional (IRP) and later confirmed as RP on 07.06.2023. Form G was published in newspapers in February 2023, and the CoC was constituted on 28.02.2023 with Bank of Baroda as the sole member.

## Facts

The Bank of Baroda, acting as the Financial Creditor, initiated proceedings against Lord Vrindavanbihari Trading Pvt. Ltd., the Corporate Guarantor. The Corporate Guarantor provided a guarantee to the Principal borrower NIIL Infrastructure Pvt. Ltd., which was already admitted into CIRP. The Adjudicating Authority initiated CIRP against the Corporate Guarantor on 30.01.2023. Sajjan Kumar Dokania was appointed as the IRP and later confirmed as RP. The RP found that the Corporate Debtor had no turnover for the last four years and no fixed assets. The CoC, consisting solely of Bank of Baroda, recommended liquidation. The RP filed an application under section 33(2) of the Code for liquidation. The IBBI circular dated 08.07.2023 was considered, highlighting the low average

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Guarantor should be allowed under section …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the Corporate Debtor had no turnover for the last four years and

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Bank of B…
- **Respondents:** Lord Vrindavanbiha…; M/s Lord Vrindavan…

## Timeline

- **2018-03-28 — CIRP Admi…**: NIIL Infrastructure Pvt. Ltd. admitted into…
- **2023-01-30 — CIRP Init…**: Adjudicating Authority initiated CIRP against Lord Vrindavanbihari Trading Pvt. Ltd.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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