# In the matter of Nag Yang Shoes Private Limited

> NCLT judgment dated 2024-02-09. Citation: TCN-2024-NCLT-02665. The application IA(IBC)/616(CHE)/2023 was filed under Section 54 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Feb 2024
- **Citation:** TCN-2024-NCLT-02665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nag-yang-shoes-private-limited-86ab9f0d

## Summary

### Background

The application IA(IBC)/616(CHE)/2023 was filed under Section 54 of the Insolvency and Bankruptcy Code, 2016, by the Liquidator of the Corporate Debtor, Nag Yang Shoes Private Limited, seeking an order for the dissolution of the Corporate Debtor. The CIRP of the Corporate Debtor was initiated by the Tribunal on 14.09.2017, and the Applicant was appointed as Interim Resolution Professional (IRP) and later as Resolution Professional (RP). The liquidation of the Corporate Debtor was ordered on 06.04.2018. The applicant caused a public announcement on 11.04.2018, inviting claims from stakeholders, with a submission deadline of 06.05.2018. The applicant received a claim from the sole financial creditor for Rs. 33,26,91,286, and admitted Rs. 32,98,54,936. A liquidation bank

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## Facts

The Corporate Debtor, Nag Yang Shoes Private Limited, underwent Corporate Insolvency Resolution Process (CIRP) initiated by the Tribunal on 14.09.2017. The applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Liquidation was ordered on 06.04.2018. A public announcement was made on 11.04.2018, inviting claims from stakeholders, with a deadline of 06.05.2018. The sole financial creditor filed a claim of Rs. 33,26,91,286, of which Rs. 32,98,54,936 was admitted. A liquidation bank account was opened on 28.04.2018. The Stakeholders Constitution Committee (SCC) was not initially formed as the regulation came into effect on 25.07.2019. The bank account was closed on 29.03.2023 after the sale and distribution of

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Nag Yang Shoes Private Limited, should be dissolved under Section …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

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**Reasoning:** The Tribunal considered the averments made in the application, the final report, and the

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**Interpretation:** Section 54 of the IBC, 2016, provides for the dissolution of a corporate debtor

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**Application:** In this case, the liquidator had completed the liquidation process, realized

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** CA Mahalingam…
- **Respondents:** Nag Yang Shoes…
- **Advocates:** A.G. Sathyanarayan…

## Timeline

- **2017-09-14 — CIRP Init…**: CIRP of the Corporate Debtor…
- **2018-04-06 — Liquidation…**: Liquidation of the Corporate…

## Legal provisions

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

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