# In the matter of Abhishek Corporation Ltd. MA 887-2018 in CP 1499-I&B Code-2017

> NCLT judgment dated 2019-03-11. Citation: TCN-2019-NCLT-04503. The case involves an application (MA 887/2018) filed by the Resolution Professional (RP) under…

- **Court:** NCLT
- **Order date:** 11 Mar 2019
- **Citation:** TCN-2019-NCLT-04503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhishek-corporation-ltd-ma-887-2018-in-cp-1499-ib-code-2017-42f54835

## Summary

### Background

The case involves an application (MA 887/2018) filed by the Resolution Professional (RP) under Section 33 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) seeking the initiation of liquidation for the Corporate Debtor, Abhishek Corporation Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated following a Section 9 petition by an operational creditor, Shri Karvir Nivasini Mahalaxmi Ispat Pvt. Ltd., due to default in payment. Despite efforts, no resolution plan was approved by the Committee of Creditors (CoC) within the stipulated time. Several applications were filed during the CIRP, including those seeking approval of a resolution plan, intervention by a labor union, and reconsideration of the resolution plan. The CIRP period was extended, but

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## Facts

Shri Karvir Nivasini Mahalaxmi Ispat Pvt. Ltd., an operational creditor, filed a Section 9 petition against Abhishek Corporation Ltd. due to payment defaults. The NCLT admitted the petition on 2017-11-17, initiating CIRP and appointing Sandeep Singhal as Interim Resolution Professional (IRP). The IRP made a public announcement on 2017-11-23, inviting claims with a deadline of 2017-12-06. Adroit Technical Services Pvt Ltd and Crest Capital Group Pvt Ltd were appointed as valuers. The IRP formed a Committee of Creditors (CoC) including various financial institutions. The first CoC meeting occurred on 2017-12-22. The CoC rejected the IRP's appointment as Resolution Professional (RP) but allowed him to continue until a new RP was appointed. Sameer Kakar was appointed as RP

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can direct the Committee of Creditors (CoC) to reconsider a …

**Ratio:** The Adjudicating Authority's role in matters challenging the decision of the CoC is

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**Reasoning:** The court relied on the Supreme Court's judgment in K. Sashidhar vs Indian Overseas Bank,

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**Interpretation:** The I&B Code gives paramount status to the commercial wisdom of the CoC

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**Application:** In this case, the CoC did not approve the resolution plan with the required

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Karvir Nivasini…
- **Respondents:** Abhishek Corporati…
- **Advocates:** Ami J…; Shilpan G…; +10 more

## Timeline

- **2017-11-17 — CIRP Init…**: Section 9 Petition filed by Shri Karvir Nivasini Mahalaxmi Ispat Pvt. Ltd. admitted,…
- **2017-11-23 — Public Annou…**: IRP issued a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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