# In the matter of Sagar Detergents Private Limited

> NCLT judgment dated 2025-11-04. Citation: TCN-2025-NCLT-01621. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 4 Nov 2025
- **Citation:** TCN-2025-NCLT-01621
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/sagar-detergents-private-limited-5713d74a

## Summary

### Background

The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking initiation of proceedings under Section 65 against Respondent No. 1 for malicious intent, fixing remuneration for the IRP, directing Respondent No. 1 to reimburse expenses, and seeking dissolution of the corporate debtor or withdrawal of the CIRP.

## Facts

The Corporate Debtor was admitted into CIRP vide order dated 02.04.2025.

The IRP issued a public announcement on 09.04.2025, inviting claims from creditors.

Four claims were received, two from Financial Creditors and two from Operational Creditors.

The Committee of Creditors (CoC) consisted of only the Commercial Tax Department, UP.

The Corporate Debtor has remained non-functional for the past four years and has no assets.

The sole CoC member expressed unwillingness to contribute towards further CIRP or liquidation expenses.

The IRP has voluntarily agreed to forgo his fees and expenses.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be dissolved due to lack of assets and non-cooperation from the …

**Ratio:** The objective of the Code is to resolve insolvency in a time-bound manner or to liquidate

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**Reasoning:** The Corporate Debtor has no assets, the CoC member is not cooperating, and the IRP is

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**Interpretation:** The Tribunal interpreted the provisions of the Code to allow for early

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**Application:** The Tribunal applied this interpretation to the present case and ordered the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Pawan…
- **Respondents:** M/s Sagar…; Shiv Gramoudyog…; +1 more
- **Other parties:** Shubhi…; Vinesh Kuma…; +1 more
- **Advocates:** Vipin Kumar…; Sh. Krishna Dev…

## Timeline

- **2025-04-02 — Admission in…**: The Corporate Debtor…
- **2025-04-09 — Public Annou…**: The IRP issued a public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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