# In the matter of Advance Surfacants India Ltd. (IB)-922(PB)-2018

> NCLT judgment dated 2020-01-14. Citation: TCN-2020-NCLT-02346. The case involves an application filed by the Resolution Professional (RP) under Section 33(2)…

- **Court:** NCLT
- **Order date:** 14 Jan 2020
- **Citation:** TCN-2020-NCLT-02346
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-surfacants-india-ltd-ib-922pb-2018-be384ac5

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code (IBC) seeking liquidation of the corporate debtor. The Committee of Creditors (CoC) had passed a resolution on 22.11.2019 with 100% voting share to liquidate the corporate debtor. The company petition was admitted on 28.05.2019, and Mr. K.G Somani was appointed as the Interim Resolution Professional (IRP). The IRP issued a public announcement inviting claims from creditors. The admitted claims aggregated to 348 crores, including financial and operational creditors. The liquidation value of the corporate debtor was determined to be Rs. 20 crores.

## Facts

State Bank of India initiated a corporate insolvency resolution process against Advance Sufactanta India Ltd. The company petition was admitted on 2019-05-28, and Mr. K.G. Somani was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement inviting claims from creditors. The total admitted claims amounted to Rs. 348 crores, including both financial and operational creditors. The liquidation value of the corporate debtor was assessed at Rs. 20 crores. The Committee of Creditors (CoC) passed a resolution on 2019-11-22 with 100% voting share to liquidate the corporate debtor, as no expression of interest was received in response to the invitation of the Expression of Interest (EOI). The Resolution Professional (RP) then filed an

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## Issues and analysis

### Issue 1: Whether the application filed by the RP under Section 33(2) of the IBC for liquidation of the …

**Ratio:** Section 33(2) of the IBC allows the RP to file an application for liquidation if the CoC

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**Reasoning:** The court noted that the CoC had passed a resolution with 100% voting share to liquidate

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when resolution efforts fail

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**Application:** Since the CoC had resolved to liquidate the corporate debtor, the RP's

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## Parties

- **Judges:** B.S.V. Prakash…; SH. S.K MOH…
- **Appellants:** State Bank of…
- **Respondents:** Advance Sufactanta…; M/s. Advance…

## Timeline

- **2019-05-28 — Admission of Company…**: The company petition was admitted, and Mr. K.G Somani was appointed as the Interim…
- **2019-05-30 — Public Annou…**: The IRP issued a public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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