# In the matter of VNR Infra Metal Private Limited

> NCLT judgment dated 2024-04-02. Citation: TCN-2024-NCLT-01880. The case pertains to an application filed under Section 54(1) of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01880
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vnr-infra-metal-private-limited-1f88d234

## Summary

### Background

The case pertains to an application filed under Section 54(1) of the Insolvency & Bankruptcy Code, 2016 (IBC) read with Regulation 45(3) of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016, by the Liquidator of M/s VNR Infra Metals Private Limited, seeking dissolution of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor vide order dated 03.03.2017. A resolution plan submitted by an investor was not approved by the Committee of Creditors (CoC). Subsequently, the Resolution Professional filed an application recommending liquidation of the Corporate Debtor, which was ordered on 22.09.2017. The Liquidator carried out a public announcement, and a claim was received

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## Facts

M/s VNR Infra Metals Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by an order dated 03.03.2017. An application was filed under Section 54(1) of the IBC, 2016, read with Regulation 45(3) of the Liquidation Process Regulations, seeking dissolution of the Corporate Debtor. A resolution plan submitted by an investor was not approved by the Committee of Creditors (CoC). The Resolution Professional recommended liquidation, which was ordered on 22.09.2017. The Liquidator made a public announcement, and only one secured creditor, Indian Overseas Bank, filed a claim. The Corporate Debtor acted as a Corporate Guarantor and mortgaged its properties for the credit limits of its parent company, M/S VNR Infrastructures Limited, to a consortium

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## Issues and analysis

### Issue 1: Whether the Corporate …

**Ratio:** Section 54 of the IBC lays down the criteria for the dissolution of the Corporate Debtor.

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**Reasoning:** The Tribunal considered the Liquidator's final report, which disclosed that the fair

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**Interpretation:** Section 54 of the IBC allows for the dissolution of a corporate debtor when its

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**Application:** The Tribunal applied Section 54(1) of the IBC, 2016, and the Liquidator's

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## Parties

- **Judges:** N. Venkata…; SH. CHARAN…
- **Respondents:** M/s VNR Infra…

## Timeline

- **2017-03-03 — CIRP Init…**: Tribunal admitted the Company Petition CP (IB) No. 13/10/HDB/2017 and ordered initiation…
- **2017-07-24 — Resolution Plan…**: Resolution Plan submitted by the…

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