Factual Matrix 

In the Instant Matter of V. Duraisamy v. Jeyapriya Fruits and Vegetables Commission Agent, The appellant-IRP issued a letter to give over possession after the adjudicating authority ordered the CIRP contrary to the debtor company, but it was returned as unclaimed. Due to the Corporate Debtor’s expulsion from the Registry of Companies for failing to file financial accounts, the appellant requested that the CIRP be dismissed. The Adjudicating Authority denied the application, holding that the CoC had to be formed with just the Operational Creditor even though the IRP had just received the claim from that creditor. The order was appealed by the appellant to the NCLAT, who contested the judgment.

Observation of the Court 

There is no provision under the Insolvency and Bankruptcy Code of 2016, according to a division bench made up of NCLAT Justice M. Venugopal and Shreesha Merla Technical Member. This is because a corporate debtor cannot form a committee of creditors with just one operational creditor.

When no single claim has been received after the public notification was made for the beginning of CIRP in opposition to the Corporate Debtor to CIRP, the NCLAT said that there is no rule in the provisions of the Code for the Corporation Borrower to establish the CoC with an individual Operational Creditor Due to the fact that IRP did not receive a single Claim even after the public notification and because the Corporate Debtor was previously struck off from the RoC, the NCLAT had held that the CIRP had been closed with regard to the Corporate Debtor while setting put aside the impugned order made by the Adjudicating Authority.

CASE NAME – V. Duraisamy v. Jeyapriya Fruits and Vegetables Commission Agent CA (AT(CH)(Ins) 25 of 2022