# In the matter of RDG Interior Decoration Exterior Architecture Private Limited IA (IB) No. 441-KB-2022 in CP (IB) No. 1303-KB-2019

> NCLT judgment dated 2022-06-17. Citation: TCN-2022-NCLT-02198. The Resolution Professional (RP) filed an application seeking liquidation of the Corporate…

- **Court:** NCLT
- **Order date:** 17 Jun 2022
- **Citation:** TCN-2022-NCLT-02198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rdg-interior-decoration-exterior-architecture-private-limited-ia-ib-no-441-kb-20-8c088bb5

## Summary

### Background

The Resolution Professional (RP) filed an application seeking liquidation of the Corporate Debtor due to the Committee of Creditors' (CoC) lackadaisical attitude during the Corporate Insolvency Resolution Process (CIRP) and their failure to take decisions regarding the continuation of CIRP or liquidation.

## Facts

The Resolution Professional (RP) filed an application under section 60(5) of the Insolvency & Bankruptcy Code, 2016, with the approval of the Committee of Creditors (CoC), seeking the liquidation of RDG Interior Decoration Exterior Architecture Private Limited, the Corporate Debtor. The RP cited the CoC's lackadaisical attitude during the Corporate Insolvency Resolution Process (CIRP) as the primary reason for seeking liquidation. Six CoC meetings were held, with the last one on March 25, 2022. From the initial meeting, CoC members showed reluctance to continue the CIRP due to the insignificant net worth of the Corporate Debtor and avoided accepting their responsibilities. Key issues, such as the submission of confidentiality undertakings for the Information

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors has failed to take a decision regarding the continuation of the …

**Ratio:** The Adjudicating Authority noted that the CoC's inaction and reluctance to take

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**Reasoning:** The CoC held six meetings, but no conclusive decision was reached on the future course of

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**Interpretation:** The court interpreted the CoC's prolonged indecision and failure to resolve

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**Application:** Given the CoC's failure to decide, the Adjudicating Authority directed the CoC

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Tapan Chakr…; Resolution…
- **Respondents:** RDG Interior…; Gagan Ferrotech…
- **Advocates:** For the Applicant:…; Resolution…

## Timeline

- **December 19, 2019 — CIRP Init…**: Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against…
- **December 25, 2019 — Public Annou…**: Public announcement made in newspapers for claims, fixing January 6, 2020, as the last…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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