2025 (8) TMI 1565

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....llenging an Order passed in I.A. 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 shar....

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....(2) of the IBC as there is hardly 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 su....

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....nate scenario be considered. Even if the CD has commercial existence, still in a scenario where a CoC could not be constituted then the resolution process can never commence. After all, constituting the CoC is central to the theme of resolution process and the IBC has not provided for commencing a CIRP without the CoC at the helm of the said process. The only avenue then open is to pursue liquidation. 6. Looking the issue from both the aspects stated above, the option open is to direct liquidation of the CD. So far as the impugned Order is concerned, this tribunal is not in agreement with the conclusion of the Adjudicating Authority. It has created an impasse. It must be underscored that no judicial fora which may include the Tribunals c....