# In the matter of Karan Gambhir, Director Forgings Pvt. Ltd. Vs Sajeve Bhushan Deora, Liquuidator for Forgings Pvt. Ltd. CA (AT) (Insolvency) 779-2018

> NCLAT judgment dated 2019-01-09. Citation: TCN-2019-NCLAT-00878. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 9 Jan 2019
- **Citation:** TCN-2019-NCLAT-00878
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/karan-gambhir-director-forgings-pvt-ltd-vs-sajeve-bhushan-deora-liquuidator-for-71550778

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal) Principal Bench, New Delhi, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, directing the liquidation of the corporate debtor, Forgings Pvt. Ltd. The appellant, Karan Gambhir, Director of Forgings Pvt. Ltd., argues that the liquidation order was passed prematurely, only 80 days after the initiation of the insolvency process, and that insufficient time (14 days) was given to submit a resolution plan. However, this issue was not raised before the Adjudicating Authority at the appropriate stage.

## Facts

Karan Gambhir, Director of Forgings Pvt. Ltd. (the corporate debtor), filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal) which directed the liquidation of Forgings Pvt. Ltd. under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The order was passed on October 26, 2018. The appellant argued that the liquidation order was premature as it was passed only 80 days after the initiation of the insolvency process, and that only 14 days were given to submit a resolution plan. However, this argument was not raised before the Adjudicating Authority. The Committee of Creditors, through its counsel, submitted that the application for liquidation was filed in the absence of any resolution plan, with the approval of the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in ordering the liquidation of the corporate debtor, …

**Ratio:** The ratio is that an appellate tribunal will generally not overturn a decision of an

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**Reasoning:** The court reasoned that the Adjudicating Authority's decision was justified because no

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**Interpretation:** The interpretation of Section 33(2) of the Insolvency and Bankruptcy Code,

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**Application:** In this case, the ratio and reasoning were applied to the fact that no

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Karan Ga…
- **Respondents:** Forgings Pv…; Sajeve Bhushan…

## Timeline

- **2018-10-26 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order under Section…
- **2018-12-14 — Previous H…**: Learned counsel for the appellant submitted that the order of liquidation had passed only…

## 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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