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

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01369. The application was filed by the Resolution Professional (RP) upon the instructions of the…

- **Court:** NCLT
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-NCLT-01369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lord-vrindavanbihari-trading-pvt-ltd-af23001c

## Summary

### Background

The application was filed by the Resolution Professional (RP) upon the instructions of the Committee of Creditors (CoC) seeking liquidation of the Corporate Guarantor, Lord Vrindavanbihari Trading Pvt. Ltd. The Adjudicating Authority, vide its order dated 30.01.2023, had 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

Bank of Baroda, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Lord Vrindavanbihari Trading Pvt. Ltd., the Corporate Guarantor. The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) on 30.01.2023 and appointed Mr. Sajjan Kumar Dokania as the Interim Resolution Professional (IRP), later confirmed as RP on 07.06.2023. The RP published Form G in newspapers in February 2023. The Committee of Creditors (CoC) was constituted on 28.02.2023, with Bank of Baroda as the sole member holding 100% voting share. Verification of audited balance sheets revealed that the corporate debtor had no turnover for the last four years and no fixed assets. The CoC recommended liquidation on

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Guarantor, Lord Vrindavanbihari Trading …

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

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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) is interpreted to mean that if a resolution plan is not viable

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**Application:** Given the Corporate Guarantor's lack of turnover and assets, and the CoC's

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## Parties

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

## Timeline

- **2018-03-28 — CIRP Admission of NIIL…**: NIIL Infrastructure Pvt. Ltd., the principal borrower, was admitted into CIRP by order of…
- **2023-01-30 — Initiation…**: The Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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