# 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-00399. The case pertains to an application filed by the Liquidator, Ms. Neha Firoda, of RJVJ Traders…

- **Court:** NCLT
- **Order date:** 18 Nov 2022
- **Citation:** TCN-2022-NCLT-00399
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rjvj-traders-pvt-ltd-ia-56mp2022-in-cpib85-ahm-2020-6931eaf6

## Summary

### Background

The case pertains to an application filed by the Liquidator, Ms. Neha Firoda, of RJVJ Traders Pvt. Ltd. for the dissolution of the corporate debtor under Section 54(1) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the Liquidation Regulations, 2016. The CIRP proceedings were initiated on 22.04.2021, and Ms. 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 of liquidation was passed on 01.10.2021, and the liquidation process commenced.

## Facts

The Corporate Debtor, RJVJ Traders Pvt. Ltd., underwent CIRP proceedings initiated on 2021-04-22. Neha Firoda was appointed as the IRP and later as the Liquidator. The CoC resolved to liquidate the company due to a lack of sufficient assets. The liquidation process commenced on 2021-10-01. A public announcement of liquidation was made on 2021-12-10. The total claim admitted by the Liquidator was Rs. 3,18,52,826. The Stakeholders Consultation Committee (SCC) was formed, comprising Mangalnayak Traders Pvt. Ltd. and Pawan Jain & Co. The company possessed minimal assets, with a cash balance of Rs. 69,350, which was used for liquidation costs. The assets were Rs 1,57,756 and liabilities were Rs 3,20,32,828. The Income Tax Department had no outstanding demand, and the

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54(1) of the …

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

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

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

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**Application:** The court applied Section 54(1) to the facts of the case, noting that the

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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…
- **2021-10-01 — Liquidation…**: Order of liquidation of the…

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