# In the matter of Sudhir Kumar Goel & Anr.
Vs. M/s Shashi Oils and Fats Pvt. Ltd & ors. Company Appeal (AT) (Ins) No. 676 of 2021 and Company Appeal (AT) (Ins) No. 99 of 2022

> NCLAT judgment dated 2022-08-04. Citation: TCN-2022-NCLAT-00304. The case involves an appeal against the order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 4 Aug 2022
- **Citation:** TCN-2022-NCLAT-00304
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudhir-kumar-goel-anr-vs-ms-shashi-oils-and-fats-pvt-ltd-ors-company-appeal-1dc767f9

## Summary

### Background

The case involves an appeal against the order passed by the Adjudicating Authority (National Company Law Tribunal, Allahabad Bench) in CA No. 143/2021 in CP (IB) No. 140/ALD/2017 dated 15.07.2021. The Appellants, ex-promoters and ex-members of M/s Shashi Oils & Fats Pvt. Ltd., challenged the dissolution order and the sale of assets of the Corporate Debtor. The company was incorporated under the Companies Act, 1956 on 26.05.2005 and was primarily engaged in the business of manufacturing and packaging of edible oil. Allahabad Bank had sanctioned a term loan facility and working capital limit to the Company, which later defaulted, leading to the account being declared NPA. The bank assigned its debts to Respondent No. 2. CIRP was initiated against the Company, and the

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## Facts

M/s Shashi Oils & Fats Pvt. Ltd. was incorporated on 26.05.2005, engaged in manufacturing and packaging edible oil. Allahabad Bank sanctioned a term loan and working capital limit. Due to financial difficulties, the company defaulted, and the account was declared NPA on 23.06.2011. Allahabad Bank took symbolic possession of the immovable properties on 30.09.2011 under SARFAESI Act. On 30.03.2013, Allahabad Bank assigned its debts to ASREC (India) Ltd. for Rs. 5,75,00,000/-. ASREC initiated recovery proceedings on 07.01.2014. CIRP was initiated on 20.03.2018. The CoC, with ASREC as the sole member, rejected the resolution plan submitted by the ex-promoters on 17.12.2018. The promoters submitted a revised proposal, which was approved by ASREC on

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## Issues and analysis

### Issue 1: Whether the dissolution order passed by the Adjudicating Authority is valid under Section 54 of the …

**Ratio:** Section 54 of the IBC provides for the dissolution of a corporate debtor once its assets

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**Reasoning:** The Tribunal observed that the Adjudicating Authority had simply complied with the

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**Interpretation:** Section 54 of the IBC is interpreted to mean that once the liquidation process

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**Application:** In this case, the Tribunal found that the liquidation process had been

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## Parties

- **Judges:** Ashok Kumar…; Rakesh…
- **Appellants:** Sudhir Kuma…
- **Respondents:** SHASHI OILS AND…; M/s Shashi Oils…
- **Advocates:** Amish T…; Milan Sing…; +2 more

## Timeline

- **2005-05-26 — Company Incor…**: M/s Shashi Oils & Fats…
- **2009-11-18 — Loan San…**: Allahabad Bank sanctioned a term loan facility…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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