# In the matter of Vyas Mercantile Private Limited

> NCLT judgment dated 2023-07-21. Citation: TCN-2023-NCLT-02391. The case involves an application to initiate Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 21 Jul 2023
- **Citation:** TCN-2023-NCLT-02391
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vyas-mercantile-private-limited-94371f45

## Summary

### Background

The case involves an application to initiate Corporate Insolvency Resolution Process (CIRP) against Vyas Mercantile Private Limited, the Corporate Debtor, filed by Birendra Kumar Agrawal, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted by the NCLT Mumbai Bench on March 16, 2021, and Mr. Ankur Kumar was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors. The Committee of Creditors (COC) was constituted, and the IRP was appointed as the Resolution Professional (RP). Several COC meetings were held to discuss the progress of the CIRP, including inviting Expressions of Interest (EOI) from Prospective Resolution Applicants (PRA).

## Facts

Birendra Kumar Agrawal, a Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vyas Mercantile Private Limited, the Corporate Debtor. The application was admitted on March 16, 2021, and Mr. Ankur Kumar was appointed as the Interim Resolution Professional (IRP). Public announcements were made to invite claims from creditors, with the last date for submission being April 19, 2021. The Committee of Creditors (COC) was constituted, and the IRP was appointed as the Resolution Professional (RP). The COC held several meetings to discuss the progress of the CIRP, including inviting Expressions of Interest (EOI) from Prospective Resolution Applicants (PRA).

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Vyas Mercantile Private Limited, should be liquidated due to the …

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

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**Reasoning:** The Committee of Creditors (COC) observed that no formal Expression of Interest (EOI) was

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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, coupled with the lack of

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## Parties

- **Judges:** KISHORE VEMULAPALL…; Anu Jagmoha…
- **Appellants:** Birendra Kumar…
- **Respondents:** Vyas Mercantile…
- **Advocates:** Bindu B…

## Timeline

- **2019-01-01 — CP (IB) No. 2…**: The original Corporate…
- **2021-03-16 — Admission of Ap…**: The application to initiate CIRP was…

## 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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