# In the matter of RJVJ Traders Pvt. Ltd. IA-56(MP)2022 In CP(IB)85-(AHM)-2020

> NCLT judgment dated 2022-11-18. Citation: TCN-2022-NCLT-00391. The case pertains to the dissolution of RJVJ Traders Pvt. Ltd., a corporate debtor, under…

- **Court:** NCLT
- **Order date:** 18 Nov 2022
- **Citation:** TCN-2022-NCLT-00391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rjvj-traders-pvt-ltd-ia-56mp2022-in-cpib85-ahm-2020-64185ba3

## Summary

### Background

The case pertains to the dissolution of RJVJ Traders Pvt. Ltd., a corporate debtor, under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the Liquidation Regulations, 2016. CIRP proceedings were initiated on 2021-04-22, and Neha Firoda was appointed as the IRP. The Committee of Creditors (CoC) resolved to liquidate the corporate debtor due to insufficient assets to meet liabilities. An order for liquidation was passed on 2021-10-01, and Neha Firoda was appointed as Liquidator.

## Facts

RJVJ Traders Pvt. Ltd. underwent CIRP proceedings initiated on 2021-04-22, leading to the appointment of Neha Firoda as IRP and subsequently as Liquidator. The CoC resolved to liquidate the company due to a lack of sufficient assets. A public announcement of liquidation was made, and claims totaling Rs. 3,18,52,826/- were admitted. The Stakeholders Consultation Committee (SCC) was formed. The realized assets amounted to Rs. 69,350/-, which were used for liquidation expenses. The Income Tax Department had no outstanding demands, and the ROC indicated a 'strike-off' status. The liquidator filed a final report. The company had liabilities of Rs 3,20,32,828/- and assets of Rs 1,57,756/-.

## Issues and analysis

### Issue 1: Whether the dissolution of the Corporate Debtor, RJVJ Traders Pvt. Ltd., is justified under Section …

**Ratio:** Section 54(1) of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the

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**Reasoning:** The court considered that the liquidation process had been carried out, the assets had

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**Interpretation:** Section 54(1) of the IBC is interpreted to allow dissolution when the

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**Application:** Given that the assets of RJVJ Traders Pvt. Ltd. had been realized and used for

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Neha Firoda…
- **Respondents:** RJVJ Traders…; Mangalnayak…

## Timeline

- **2021-04-22 — CIRP Init…**: CIRP proceedings of the…
- **2021-04-22 — Appointment…**: Neha Firoda was appointed as the Interim Resolution Professional (IRP) of the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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