# In the matter of Vyas Mercantile Private Limited

> NCLT judgment dated 2024-03-11. Citation: TCN-2024-NCLT-02121. The case involves an application for the dissolution of Vyas Mercantile Private Limited, a…

- **Court:** NCLT
- **Order date:** 11 Mar 2024
- **Citation:** TCN-2024-NCLT-02121
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vyas-mercantile-private-limited-9d7bdd8a

## Summary

### Background

The case involves an application for the dissolution of Vyas Mercantile Private Limited, a corporate debtor, under Section 54 of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor following a petition filed by a financial creditor under Section 7 of the IBC. Ankur Kumar was initially appointed as the Interim Resolution Professional. Subsequently, the Committee of Creditors (CoC) approved a resolution for the liquidation of the Corporate Debtor. Sachin Dharmendra Jain was appointed as the Liquidator. The liquidator then sought permission to dissolve the Corporate Debtor after liquidating all its assets.

## Facts

On 16.03.2021, the Adjudicating Authority initiated the Corporate Insolvency Resolution Process (CIRP) against Vyas Mercantile Private Limited, following a petition filed by a financial creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016. Ankur Kumar was appointed as the Interim Resolution Professional. On 23.09.2021, the CoC approved the resolution for liquidation. Sachin Dharmendra Jain was appointed as the Liquidator on 21.07.2023. The Liquidator made a public announcement on 24.07.2023, informing the public about the liquidation process. The assets of the Corporate Debtor, consisting of inventory of books, were sold through e-auction for Rs. 7,43,000/-. The Second Meeting of the Stakeholders' Consultation Committee was held on 10.08.2023. The Third

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## Issues and analysis

### Issue 1: Whether the Applicant should be allowed to proceed for dissolution of the Corporate Debtor under …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016, provides for the dissolution of a

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**Reasoning:** The court considered the submissions made by the Counsel for the Liquidator, the Final

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**Interpretation:** Section 54(1) of the IBC mandates that when the assets of a corporate debtor

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**Application:** The Liquidator, Sachin Dharmendra Jain, had completely liquidated the assets of

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## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Appellants:** Birendra Kumar…
- **Respondents:** Vyas Mercantile…

## Timeline

- **2021-03-16 — Initiation…**: The Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP)…
- **2021-09-23 — CoC Approval for…**: The Committee of Creditors (CoC) approved the resolution for liquidation of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(1) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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