The National Company Law Tribunal in the case Skystep Trading Ltd vs Tradeohub B2B Limited, wherein the Ahmedabad bench comprising of Judicial Member, Dr. Madan B Gosavi and the Technical Member, Shri Kaushalendra Kumar Singh in the case observed and has ordered the liquidation of Corporate Debtor, Tradeohub B2B Limited under Section 33(1) of Insolvency and Bankruptcy Code, 2016.
However, the Corporate Debtor was being admitted into Corporate Insolvency Resolution Process on 16.11.2021 and has appointed an Interim Resolution Professional. Thus, Public announcements were also being made for initiation of CIRP and inviting claims of Creditors of the Corporate Debtor. It has also been admitted by the NCLT that a total claim of 18.5 crores against the Corporate Debtor, out of which 6.9 crores were being owned towards Operational Creditors and 11.5 crores were being owed towards Financial Creditors.
Therefore, there being no Resolution Applicant for the Corporate Debtor and the Committee of Creditors, wherein it was decided to liquidate the Corporate Debtor with 69.22% voting share as the Corporate Debtor just had 1 immovable property with the liquidation value of the amount of 50.12 lakhs.
In the present case, the Tribunal relied on the judgment of NCLAT in the case Praveen Kumar Nand Kumar Vs. VSL Securities Pvt. Ltd, wherein it has been held by the court that the decision of CoC recommending liquidation after proper evaluation of assets and liabilities of the Corporate Debtor would be a business decision falling within the commercial wisdom of the CoC and the same was amendable to judicial review.
Tradeohub B2B Limited being a manufacturing company which manufactured food and agriculture, the chemicals, pharma, polymers and additives and other industrial raw materials.
