# In the matter of Sagar Infra Rail International Limited IA No. 132-2021 in CP (IB) No. 376-7-HDB-2018

> NCLT judgment dated 2021-03-04. Citation: TCN-2021-NCLT-02831. The present application, IA No. 132/2021 in CP(IB)No.376/7/HDB/2018, was filed by the…

- **Court:** NCLT
- **Order date:** 4 Mar 2021
- **Citation:** TCN-2021-NCLT-02831
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sagar-infra-rail-international-limited-ia-no-132-2021-in-cp-ib-no-376-7-hdb-2018-1d33f245

## Summary

### Background

The present application, IA No. 132/2021 in CP(IB)No.376/7/HDB/2018, was filed by the Resolution Professional seeking approval for the liquidation of the Corporate Debtor, Sagar Infra Rail International Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by State Bank of India (Financial Creditor) under Section 7 of the IB Code, which was admitted on 08.08.2019. Sri Vamsi Kambhammettu was appointed as the Interim Resolution Professional.

## Facts

M/s. Sagar Infra Rail International Limited faced Corporate Insolvency Resolution Process (CIRP) following an application by State Bank of India (Financial Creditor) under Section 7 of the IB Code. The application was admitted on 08.08.2019, and Sri Vamsi Kambhammettu was appointed as the Interim Resolution Professional. Public announcements were made to invite resolution plans, but no viable plan was received. The Committee of Creditors (CoC) deemed the single received plan as commercially unviable. Consequently, the CoC resolved to recommend liquidation of the Corporate Debtor and continue with the Resolution Professional as the Liquidator. The CoC approved a fee of 65% of the Liquidator's Fee and estimated the liquidation cost to be Rs.9,50,000/-. The Adjudicating

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Sagar Infra Rail International …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received under Sub-Section

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**Interpretation:** Section 33 provides a clear pathway for liquidation when the CIRP process fails

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**Application:** In this case, the absence of a resolution plan, coupled with the CoC's

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## Parties

- **Judges:** Madan B.…; Veera Brahma Rao…
- **Respondents:** Sagar Infra Rail…

## Timeline

- **2018-01-01 — CP(IB)No.376/7/HDB/2018…**: CP(IB)No.376/7/HDB/2018 filed by State Bank of India (Financial Creditor) against M/s.…
- **2019-08-08 — Application A…**: The Adjudicating Authority admitted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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