# In the matter of Abhishek Corporaiton Ltd. MA 1213-2019 In CP (IB) 1499(MB)-2017

> NCLT judgment dated 2019-04-02. Citation: TCN-2019-NCLT-04184. The case involves an application (MA 1213/2019) filed by the Resolution Professional under…

- **Court:** NCLT
- **Order date:** 2 Apr 2019
- **Citation:** TCN-2019-NCLT-04184
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhishek-corporaiton-ltd-ma-1213-2019-in-cp-ib-1499mb-2017-bf13e0b2

## Summary

### Background

The case involves an application (MA 1213/2019) filed by the Resolution Professional under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an appropriate order from the National Company Law Tribunal (NCLT) regarding the liquidation of Abhishek Corporation Ltd., the Corporate Debtor. The initial Resolution Professional appointed for the liquidation expressed unwillingness to act as Liquidator. The Tribunal had previously admitted a petition filed by Shri Karvir Nivasini Mahalaxmi Ispat Pvt Ltd, the Operational Creditor, under Section 9 of the IBC, on 17.11.2017. An appeal against the Tribunal's order is pending before the NCLAT.

## Facts

Shri Karvir Nivasini Mahalaxmi Ispat Pvt Ltd, an Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), which was admitted on 17.11.2017. Abhishek Corporation Ltd. is the Corporate Debtor undergoing liquidation. Mr. Ashish Mukund Chandak was initially appointed as Liquidator but declined the position due to health reasons, as communicated via email on 15.3.2019. Mr. Sameer Kakar was the Resolution Professional and was directed to act as an interim caretaker. The Corporate Debtor has over 700 workers/employees whose salaries are due. An appeal against the Tribunal's order is pending before the NCLAT. The Resolution Professional initially refused to act as a Liquidator but later showed willingness. Ultimately, Mr. Kshitij

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## Issues and analysis

### Issue 1: Whether the Tribunal should appoint a new Liquidator for the Corporate Debtor, Abhishek Corporation …

**Ratio:** The Tribunal has the authority and responsibility to ensure the smooth continuation of

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**Reasoning:** The initial Liquidator, Mr. Ashish Mukund Chandak, expressed his unwillingness to act as

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**Interpretation:** The IBC empowers the Tribunal to oversee the liquidation process and make

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**Application:** In this case, the Tribunal applied the principle of ensuring the continuity of

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Karvir Nivasini…
- **Respondents:** Abhishek Corporati…

## Timeline

- **2017-11-17 — Petition Ad…**: Petition filed by Shri Karvir Nivasini Mahalaxmi Ispat Pvt Ltd under Section 9 of IBC was…
- **2019-03-11 — Tribunal…**: Tribunal passed an order under Section 33(1)…

## 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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