# In the matter of Advance Surfactants India Ltd. Vs. State Bank of India

> NCLAT judgment dated 2020-10-08. Citation: TCN-2020-NCLAT-00090. The case involves an appeal against the order dated 14th January 2020, by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 8 Oct 2020
- **Citation:** TCN-2020-NCLAT-00090
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/advance-surfactants-india-ltd-vs-state-bank-of-india-4135beb2

## Summary

### Background

The case involves an appeal against the order dated 14th January 2020, by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, which ordered the Corporate Debtor to be liquidated. The Adjudicating Authority's approval was based on the recommendation of the Committee of Creditors, who passed a resolution on 22nd November 2019, recommending the liquidation of the Corporate Debtor with 100% voting shares.

## Facts

The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, ordered the Corporate Debtor to be liquidated based on the recommendation of the Committee of Creditors (CoC). The CoC had passed a resolution on 22nd November 2019, recommending liquidation with 100% voting shares. The appellant challenged this order, but the appellate tribunal found the appeal without merit, emphasizing the commercial wisdom of the CoC and Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

## Issues and analysis

### Issue 1: Whether the decision of the Adjudicating Authority to order liquidation of the Corporate Debtor, …

**Ratio:** The commercial wisdom of the Committee of Creditors is paramount in decisions regarding

…

**Reasoning:** The appellate tribunal emphasized that the decision to liquidate the Corporate Debtor is

…

**Interpretation:** The commercial wisdom of the CoC is given high regard in insolvency

…

**Application:** In this case, the Adjudicating Authority's decision was based on the CoC's

…

## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +1 more
- **Appellants:** M/s. Advance…
- **Respondents:** State Bank of…
- **Advocates:** Deepak Kh…; Tejasv…

## Timeline

- **2019-11-22 — CoC Resol…**: Committee of Creditors passed a resolution recommending liquidation of the Corporate…
- **2020-01-14 — Adjudicating Authority…**: The Adjudicating Authority (National Company Law Tribunal) ordered the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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