2025 (8) TMI 1565

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....No.783 of 2022 by the IRP in C.P. (IB) No.308 of 2020 by the NCLT, Ahmedabad. 2. The facts are as below: a) The appellant has initiated a CIRP proceedings against M/s. STROS Esquire Elevators & Hoists Pvt. Ltd. The CD was incorporated as a joint venture vehicle based on a joint venture agreement entered into between the appellant and another company. In the CD the appellant holds 50% shares. Besides it has also advanced certain loans. Since the loan amount was not repaid, CIRP was set in motion against the CD. On 5.8.2022, CIRP was admitted and IRP was appointed. b) The IRP found that there is only one financial creditor and no Operational Creditor and inasmuch as the appellant is a shareholder in the CD company, it is ....

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.... any possibility for any conflict of interest as pointed out in the Phoenix ARC case. b) At any rate, the Adjudicating Authority should not have ordered liquidation of the company. What the adjudicating authority now attempted is to restore status quo ante as was prior to the initiation of the CIRP. This would leave the appellant stranded and remediless within the legal system. 4. The RP appeared online and in person and concurred with the submissions of the counsel for the appellant that barring the appellant, the CD has no other creditors of any class or category. To a pointed query from us, the RP answered that CD is not operational now and is not running. The Counsel for the appellant also submitted that CD is not operating.....