# In the matter of VMC Systems Ltd.

> NCLT judgment dated 2023-05-25. Citation: TCN-2023-NCLT-03202. The case pertains to IA(IBC) 725/2023 in CP(IB) No.677/7/HDB/2018 under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 25 May 2023
- **Citation:** TCN-2023-NCLT-03202
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vmc-systems-ltd-d20e03df

## Summary

### Background

The case pertains to IA(IBC) 725/2023 in CP(IB) No.677/7/HDB/2018 under Section 7 of the IBC, 2016. The matter involves State Bank of India as the Financial Creditor and VMC Systems Ltd as the Corporate Debtor. The Liquidator and their counsel were absent during the hearing, leading to the progress report not being taken.

## Facts

The case involves IA(IBC) 725/2023 in CP(IB) No.677/7/HDB/2018, where State Bank of India is the Financial Creditor and VMC Systems Ltd is the Corporate Debtor. The Liquidator and their counsel were absent during the hearing on 25-05-2023. Consequently, the progress report was not taken. The court has scheduled the next hearing for IA on 19.06.2023. The court has warned that if the Liquidator remains absent, action against them will be recommended to IBBI. This absence is hindering the insolvency resolution process.

## Issues and analysis

### Issue 1: Whether the absence of the Liquidator and their …

**Ratio:** The court has the discretion to adjourn a hearing if a necessary party is absent,

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**Reasoning:** The Liquidator's presence is essential for providing updates on the progress of the

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**Interpretation:** The adjournment is a procedural measure to ensure that all parties have an

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**Application:** Given the absence of the Liquidator and their counsel, the court adjourned the

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** State Bank of…
- **Respondents:** VMC Syste…

## Timeline

- **2023-05-25 — Hearing…**: Hearing held on 25-05-2023 at 11:00 AM. The…
- **2023-06-19 — Next Hearin…**: The next hearing is…

## 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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