# In the matter of Sahil Spintex Limited

> NCLT judgment dated 2025-06-05. Citation: TCN-2025-NCLT-00932. The application was filed by Mr. Mohit Chawla, the Resolution Professional of Sahil Spintex…

- **Court:** NCLT
- **Order date:** 5 Jun 2025
- **Citation:** TCN-2025-NCLT-00932
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sahil-spintex-limited-ca6a43e4

## Summary

### Background

The application was filed by Mr. Mohit Chawla, the Resolution Professional of Sahil Spintex Private Limited, seeking the initiation of liquidation proceedings under Section 33(2) of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Financial Creditor, State Bank of India, initiated CIRP against Sahil Spintex Private Limited under Section 7 of the IBC.

Mr. Mohit Chawla was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP).

The IRP made a public announcement of the CIRP on 03.11.2022.

The Committee of Creditors (CoC) consisted of two financial creditors: State Bank of India and Punjab National Bank.

The CoC decided to re-publish Form G after the initial publication did not yield any resolution plans.

The CIRP period was extended by 90 days by the Adjudicating Authority.

No resolution plans were received despite the extension of the deadline.

The CoC resolved with 100% voting to liquidate the Corporate Debtor.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Sahil Spintex Private Limited, should be liquidated under Section …

**Ratio:** Section 33(2) of the Code allows for the initiation of liquidation proceedings when no

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**Reasoning:** The CoC, with 100% voting share, resolved to liquidate the Corporate Debtor after no

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**Interpretation:** The Adjudicating Authority interpreted Section 33(2) to allow for liquidation

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**Application:** The Adjudicating Authority applied Section 33(2) and allowed the application

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## Parties

- **Judges:** KHETRABASI…; KAUSHALENDRA…
- **Appellants:** Mohit C…
- **Respondents:** Sahil Spintex…; M/s Sahil Spintex…; +1 more
- **Other parties:** Punjab National…; Gurbinder…
- **Advocates:** Pulkit…

## Timeline

- **2020 — CP (IB) No.50/CHD/PB/202…**: CP (IB) No. 50/CHD/PB/2020 filed by State Bank of India against Sahil Spintex Private…
- **2022-11-01 — Order Da…**: Tribunal admitted the application vide Order dated 01.11.2022, and Mr. Mohit Chawla was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 66 — Fraudulent trading or wrongful trading](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-66)

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