# In the matter of Talwalkars Better Value Fitness Limited IA-272-2022 in C.P.(IB)-1056(MB)-2020

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02986. The case involves an application for the liquidation of Talwalkars Better Value Fitness…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-02986
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/talwalkars-better-value-fitness-limited-ia-272-2022-in-cpib-1056mb-2020-0343e92d

## Summary

### Background

The case involves an application for the liquidation of Talwalkars Better Value Fitness Limited, the Corporate Debtor. Axis Bank Limited, the Financial Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Tribunal admitted the petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 2021-01-11. The Interim Resolution Professional (IRP) was appointed, who then made public announcements inviting claims from creditors. A Committee of Creditors (CoC) was constituted. Prior to the CIRP, a Scheme of Demerger was approved by the NCLT on 2017-12-21, demerging the gym business of the Corporate Debtor into Talwalkars Healthclubs Limited. The IRP was appointed as the Resolution Professional (RP) in the first CoC

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## Facts

Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Talwalkars Better Value Fitness Limited. The petition was admitted on 2021-01-11 under Section 7 of the Insolvency and Bankruptcy Code (IBC). An Interim Resolution Professional (IRP) was appointed, who then made public announcements inviting claims from creditors and constituted a Committee of Creditors (CoC). Prior to the CIRP, a Scheme of Demerger was approved by the NCLT on 2017-12-21, demerging the gym business of the Corporate Debtor into Talwalkars Healthclubs Limited. The IRP was appointed as the Resolution Professional (RP) in the first CoC meeting held on 2021-02-17. The RP filed an application due to non-cooperation from the erstwhile management. The RP published Form G on

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## Issues and analysis

### Issue 1: Whether the application for liquidation of Talwalkars Better Value Fitness Limited should be …

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

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**Reasoning:** The Corporate Insolvency Resolution Process (CIRP) failed to produce a viable resolution

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when CIRP is unsuccessful.

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**Application:** Since no resolution plan was received despite inviting EoIs, and the CoC

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Respondents:** Talwalkars Better…
- **Advocates:** Yashish C…; Ramakan…; +2 more

## Timeline

- **2017-12-21 — Scheme of Demerger…**: A Scheme of Demerger was approved by the NCLT, demerging the gym business of the…
- **2021-01-11 — CIRP Init…**: The Tribunal admitted the petition under Section 7 of the IBC, filed by Axis Bank…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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