# STROS-Sedlcanske Strojirny vs. Poonam Basak

> NCLAT judgment dated 2024-09-06. Citation: TCN-2024-NCLAT-00740. The appellant initiated CIRP against M/s. STROS Esquire Elevators & Hoists Pvt. Ltd. The CD…

- **Court:** NCLAT
- **Order date:** 6 Sept 2024
- **Citation:** TCN-2024-NCLAT-00740
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/stros-sedlcanske-strojirny-vs-poonam-basak-gu3j6tii

## Summary

### Background

The appellant initiated CIRP against M/s. STROS Esquire Elevators & Hoists Pvt. Ltd. The CD was incorporated as a joint venture and the appellant holds 50% shares. CIRP was initiated due to non-repayment of loans. CIRP was admitted on 05.08.2022, and an IRP was appointed.

## Facts

The appellant initiated CIRP against M/s. STROS Esquire Elevators & Hoists Pvt. Ltd.

The appellant holds 50% shares in the Corporate Debtor (CD).

CIRP was initiated due to non-repayment of loans.

CIRP was admitted on 05.08.2022, and an IRP was appointed.

The IRP found only one financial creditor, the appellant, who is also a shareholder and related party.

The Adjudicating Authority chose not to direct liquidation but directed the appellant to withdraw the CIRP.

The RP stated that the CD is not a going concern and has no commercial activity.

The Adjudicating Authority order dated 06.09.2024 in I.A.783/2022 in C.P.(IB) 308 of 2020 on the file of NCLT, Ahmedabad is set aside, and this tribunal directs liquidation of the corporate debtor.

## Issues and analysis

### Issue 1: Whether a CoC can be constituted with a …

**Ratio:** The statutory embargo against constituting a CoC with a related party is explained in

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**Reasoning:** The Hon'ble Supreme Court held that the embargo is intended to obviate conflicts of

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**Interpretation:** The Tribunal acknowledges the argument to accommodate such financial creditor

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**Application:** The Tribunal appreciates the argument of the learned counsel for the appellant,

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## Parties

- **Judges:** N. Sesha…; Arun Ba…; +1 more
- **Appellants:** STROS-Sedlcanske…
- **Respondents:** STROS Esquire…; Poonam…; +1 more
- **Other parties:** JerzLE2XSCWtLxViMw…
- **Advocates:** Anand…; Ang B…; +2 more

## Timeline

- **2022-08-05 — CIRP Admi…**: CIRP was admitted and…
- **2024-09-06 — Adjudicating Authority…**: Order of the Adjudicating Authority in I.A.783/2022 in C.P.(IB) 308 of 2020 on the file…

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