# In the matter of Sai Infosystem (India) Ltd. IA 279-2018 in C.P. (IB) No. 164-NCLT-AHM-2017

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01861. The case involves an application filed by the Resolution Professional (RP) seeking an order for…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01861
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sai-infosystem-india-ltd-ia-279-2018-in-cp-ib-no-164-nclt-ahm-2017-053c43fb

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking an order for liquidation of the Corporate Debtor, Sai Infosystem (India) Ltd., under Section 33 of the Insolvency and Bankruptcy Code (IBC). The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by Allahabad Bank under Section 7 of the IBC, and an Interim Resolution Professional (IRP) was appointed. The Committee of Creditors (CoC) resolved to close the CIRP and instructed the RP to file an application for liquidation.

## Facts

Allahabad Bank, as a Financial Creditor, filed a petition under Section 7 of the IBC, leading to the commencement of CIRP and the appointment of an IRP. The CoC, in its meeting on 2018-05-21, resolved to close the CIRP and instructed the RP to file an application for liquidation. The Corporate Debtor, Sai Infosystem (India) Ltd., has not been a going concern since June 2013 and has been out of business for the past 5 years. There are no key managerial personnel or employees in the company, and the assets are not favorable for revival. No resolution plan was received. The RP filed an application under Section 33 of the IBC, based on the CoC's resolution. The CIRP was closed on 2018-05-28. The application for liquidation was filed on 2018-05-28.

## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 of the IBC should be approved given the …

**Ratio:** Section 33 of the IBC allows for the initiation of liquidation proceedings when the CoC

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**Reasoning:** The Adjudicating Authority considered the fact that the Corporate Debtor had not been a

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**Interpretation:** Section 33 of the IBC is interpreted to allow liquidation when the CIRP fails

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**Application:** Given the facts that Sai Infosystem (India) Ltd. was not a going concern,

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Sai Infosystem…; Allahabad…
- **Advocates:** Naven P…; Hemam Ch…; +1 more

## Timeline

- **2017-11-30 — CIRP Commen…**: CIRP commenced based on Allahabad Bank's…
- **2018-05-21 — CoC Resol…**: CoC resolved to close the…

## 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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