# 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-03010. The case involves an application for the liquidation of Talwalkars Better Value Fitness…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-03010
- **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-2020-5f87adcd

## Summary

### Background

The case involves an application for the liquidation of Talwalkars Better Value Fitness Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against the company following a petition filed by Axis Bank Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The IRP made public announcements inviting claims from creditors and constituted a Committee of Creditors (CoC). A scheme of demerger, approved before the CIRP, had demerged the gym business of the Corporate Debtor into Talwalkars Healthclubs Limited. Despite inviting Expression of Interest (EoI) from prospective Resolution Applicants, no resolution plan was

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## Facts

Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Talwalkars Better Value Fitness Limited by filing a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2021-01-11. The applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. Prior to the CIRP, a scheme of demerger was approved, demerging the gym business into Talwalkars Healthclubs Limited. The Committee of Creditors (CoC) appointed the IRP as RP in its first meeting on 2021-02-17. The RP filed an application due to non-cooperation from the erstwhile management. The RP appointed Pipara & Co. LLP for bookkeeping

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that since no resolution plan was received despite inviting Expression

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** In this case, the absence of a resolution plan, the CoC's approval of

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## Parties

- **Judges:** KISHORE VEMULAPALL…; RAJESH S…
- **Appellants:** Axis Bank L…
- **Respondents:** Talwalkars Better…

## Timeline

- **2021-01-11 — Petition Ad…**: Tribunal admitted the petition under Section 7…
- **2021-02-17 — RP Appoi…**: IRP was appointed as RP of the Corporate Debtor in the first meeting of the Committee of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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