# In the matter of Wadhawan Global Hotels & Resorts Private Limited

> NCLT judgment dated 2024-09-23. Citation: TCN-2024-NCLT-00570. The case involves an application for the early dissolution of M/s. Wadhawan Global Hotels and…

- **Court:** NCLT
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-NCLT-00570
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/wadhawan-global-hotels-resorts-private-limited-0cb71a03

## Summary

### Background

The case involves an application for the early dissolution of M/s. Wadhawan Global Hotels and Resorts Private Limited, a Corporate Debtor, under Section 54(1) of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor underwent Corporate Insolvency Resolution Process (CIRP) initiated by Ms. Richa Pruthi, an Operational Creditor. The Resolution Professional (RP) filed an application seeking liquidation approval. The Committee of Creditors (CoC), comprising Punjab National Bank, resolved to go for liquidation due to the absence of remaining assets and CBI investigation. The RP was nominated as the liquidator.

## Facts

Ms. Richa Pruthi, proprietor of System Tech, initiated CIRP against M/s. Wadhawan Global Hotels and Resorts Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. CIRP was initiated on 2023-03-17. The IRP made a public announcement on 2023-03-19. The CoC was formed with Punjab National Bank as the sole financial creditor. The first CoC meeting was held on 2023-04-18, where it was revealed that the Corporate Debtor had no remaining assets, except a stolen car found in broken condition. The books of accounts were not prepared after the financial year 2017-2018, and annual returns were not filed. The office premises were sealed by the CBI. The CoC resolved to go for liquidation and sell the car. The second CoC meeting on 2023-06-08 resolved to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the early dissolution of the Corporate Debtor …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Rule 14 of the IBBI

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**Reasoning:** The Adjudicating Authority considered the RP's statement and the CoC's resolution, noting

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**Interpretation:** Section 54 allows for early dissolution when the continuation of the

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**Application:** Given the absence of assets, the ongoing CBI investigation, and the CoC's

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** S. Gopalkr…
- **Respondents:** M/s. Wadhawan…

## Timeline

- **2020-01-01 — CP(IB)/645(MB)/2020…**: Company Petition filed…
- **2023-03-17 — CIRP Init…**: CIRP initiated against…

## 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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