# In the matter of Vinesh Traders Private Limited

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01839. The case involves an application filed by Mr. Sapan Mohan Garg, the Resolution Professional of…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vinesh-traders-private-limited-007fa5cb

## Summary

### Background

The case involves an application filed by Mr. Sapan Mohan Garg, the Resolution Professional of M/s. Vinesh Traders Private Limited, seeking the initiation of liquidation proceedings for the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors (CoC) decided to initiate liquidation due to the negligible assets of the Corporate Debtor. An application was previously filed under Section 7 of the Code by M/s. Alchemist Asset Reconstruction Private Limited, the Financial Creditor, which led to the initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s. Alchemist Asset Reconstruction Private Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Vinesh Traders Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the application on 2022-03-22 and appointed Mr. Sapan Mohan Garg as the Interim Resolution Professional (IRP), who was later appointed as the Resolution Professional (RP). During the CIRP, the IRP made public announcements for inviting claims. The Committee of Creditors (CoC) was constituted with M/s. Alchemist Asset Reconstruction Private Limited as the sole member. The CoC, after considering the financial position of the Corporate Debtor, decided to initiate

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Vinesh Traders Private …

**Ratio:** Section 33(2) of the IBC empowers the CoC to pass a resolution, with the requisite

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**Reasoning:** The court reasoned that the CoC, with 100% voting rights, had approved the liquidation of

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that the CoC has the power to

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**Application:** The ratio and reasoning were applied to the facts of the case, where the CoC

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Respondents:** M/s. VINESH…
- **Advocates:** Milan Sing…

## Timeline

- **2022-03-22 — Admission…**: Adjudicating Authority admitted the application and initiated CIRP against the Corporate…
- **2022-04-12 — CoC Consti…**: The Applicant prepared the list of creditors and constituted the Committee of Creditors…

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