# In the matter of Dynamic Shells (India) Pvt. Ltd. C.A. 1378 (PB) -2019 in Company Petition No. (IB)-718 (PB) -2018

> NCLT judgment dated 2019-08-23. Citation: TCN-2019-NCLT-01829. The case involves an application filed by the Resolution Professional under Section 33(1)(a) of…

- **Court:** NCLT
- **Order date:** 23 Aug 2019
- **Citation:** TCN-2019-NCLT-01829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dynamic-shells-india-pvt-ltd-ca-1378-pb-2019-in-company-petition-no-ib-718-pb-20-125a0a8f

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, M/s. Dynamic Shells (India) Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by the financial creditor, Punjab National Bank, under Section 7 of the Code. The application was admitted by the Tribunal on 27.09.2018, and Mr. Nilesh Sharma was appointed as the Interim Resolution Professional (IRP). The IRP invited claims from creditors and constituted a Committee of Creditors (CoC).

## Facts

Punjab National Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Dynamic Shells (India) Private Limited, the corporate debtor, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). The application was admitted on 2018-09-27. Nilesh Sharma was appointed as the Interim Resolution Professional (IRP). The IRP invited claims from creditors and formed a Committee of Creditors (CoC). The CoC convened meetings, and the IRP invited Expressions of Interest (EoI) from Prospective Resolution Applicants. Only one Prospective Resolution Applicant, Mr. Shaiendra Kumar Singhal, submitted an EoI initially. The initial 180-day CIRP period was extended by 90 days until 2019-06-24. Further EoIs were invited, and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the corporate debtor under …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, mandates that if the Adjudicating

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**Reasoning:** The court reasoned that the statutory CIRP period of 270 days had expired, and no viable

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**Interpretation:** Section 33(1)(a) of the Code is interpreted to mean that liquidation is the

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**Application:** In this case, the CIRP failed to produce a viable resolution plan within the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Nilesh S…
- **Respondents:** Dynamic Shells…
- **Advocates:** Milan Sing…

## Timeline

- **2018-09-27 — Admission of Ap…**: The Tribunal admitted the application for initiating Corporate Insolvency Resolution…
- **2019-03-28 — Extension of CI…**: The CIRP period was…

## 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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