# In the matter of Sabre Helmets Private Limited MA 2776-2019 in C.P. (IB) 1333-(MB)-2018

> NCLT judgment dated 2020-01-20. Citation: TCN-2020-NCLT-02261. MA 2776/2019 was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 20 Jan 2020
- **Citation:** TCN-2020-NCLT-02261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sabre-helmets-private-limited-ma-2776-2019-in-cp-ib-1333-mb-2018-12379812

## Summary

### Background

MA 2776/2019 was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of Sabre Helmets Private Limited, the Corporate Debtor. An application under Section 9 of IBC, 2016 was admitted by order dated 22.02.2019, and the Applicant was appointed as the Interim Resolution Professional (IRP). The IRP issued a Public Announcement on 03.03.2019. The Committee of Creditors (CoC) was constituted, and meetings were convened on multiple dates. The Corporate Debtor had discontinued its sales operations from Financial Year 2014-2015 and limited its operations to winding up the business affairs and disposal of its assets.

## Facts

Mr. Mukesh Khathuria, the Resolution Professional, filed MA 2776/2019 seeking the liquidation of Sabre Helmets Private Limited. An application under Section 9 of IBC, 2016, was previously admitted on 22.02.2019. The Corporate Debtor ceased business operations and had no fixed assets or inventory. The CoC, comprised of Operational Creditors, resolved to liquidate the Corporate Debtor with a 91.65% vote share after a forensic audit revealed no suspicious transactions. The CIRP period expired on 27.08.2019. The only asset was a Sales Tax refund of approximately ₹17,00,000, subject to pending assessments. The CoC determined there was no scope for revival or resolution.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Sabre Helmets Private Limited, …

**Ratio:** Section 33(2) of the IBC, 2016, allows for the liquidation of a corporate debtor when the

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**Reasoning:** The Corporate Debtor had ceased business operations, possessed no fixed assets or

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when revival is not

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**Application:** Given the circumstances, the Adjudicating Authority determined that the

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## Parties

- **Judges:** RAJESH S…; Bhaskara Pantula…
- **Appellants:** Mukesh Kha…
- **Respondents:** Sabre Helmets…

## Timeline

- **2019-02-22 — Application under…**: Application filed under Section 9 of IBC,…
- **2019-02-22 — Moratorium d…**: Moratorium declared vide Order dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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