# In the matter of V R V Textiles Limited IA(IBC)-197-2023 in IA(IBC)-92-AMR-2022 in CP (IB) -26-10-AMR-2021

> NCLT judgment dated 2023-05-26. Citation: TCN-2023-NCLT-03156. The case involves an application for the dissolution of VRV Textiles Limited, a Corporate…

- **Court:** NCLT
- **Order date:** 26 May 2023
- **Citation:** TCN-2023-NCLT-03156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/v-r-v-textiles-limited-iaibc-197-2023-in-iaibc-92-amr-2022-in-cp-ib-26-10-amr-20-582c9b57

## Summary

### Background

The case involves an application for the dissolution of VRV Textiles Limited, a Corporate Debtor, under Section 54 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The company petition CP(IB)/26/10/AMR/2021 was filed under Section 10 of the IBC, 2016, and admitted on 26.10.2021. The applicant was appointed as the Interim Resolution Professional (IRP).

## Facts

VRV Textiles Limited filed a company petition CP(IB)/26/10/AMR/2021 under Section 10 of IBC, 2016, which was admitted on 2021-10-26. The applicant was appointed as the Interim Resolution Professional (IRP). The IRP issued public notices inviting claims, but no claims were received from financial creditors, resulting in a CoC consisting only of operational creditors. The CoC meetings were poorly attended. The IRP could not take possession of any assets. The CoC approved the liquidation of the Corporate Debtor. The applicant expressed willingness to act as Liquidator. The Tribunal allowed IA(IBC)/92/2022 for liquidation on 2022-05-31. The Corporate Debtor has no assets, and the CoC was uncooperative. The Liquidator requested the Tribunal to dissolve the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Tribunal should allow the application for dissolution of the Corporate Debtor, VRV …

**Ratio:** Section 54 of the IBC, 2016, provides for the dissolution of a corporate debtor where the

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**Reasoning:** The Tribunal reasoned that the facts and circumstances of the case justify that no

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**Interpretation:** Section 54 of the IBC is interpreted to mean that if a corporate debtor has no

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**Application:** In this case, the Corporate Debtor had no assets, and the CoC was

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## Parties

- **Judges:** TELAPROLU…
- **Respondents:** V R V TEXTILES…

## Timeline

- **2021-10-26 — Admission of Company…**: Company Petition CP(IB)/26/10/AMR/2021 filed…
- **2021-10-28 — Publication fo…**: Applicant issued paper publication in…

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