# In the matter of Sainsons Pulp and Papers Limited IA No.212-2021 In CP (IB) No.486-Chd-Hry-2019

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00093. The case pertains to the corporate insolvency resolution process (CIRP) of M/s Sainsons Pulp…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sainsons-pulp-and-papers-limited-ia-no212-2021-in-cp-ib-no486-chd-hry-2019-ac717ad7

## Summary

### Background

The case pertains to the corporate insolvency resolution process (CIRP) of M/s Sainsons Pulp and Papers Limited. The CIRP was initiated based on a petition filed by the Corporate Debtor under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, which was admitted on 03.03.2020. An Interim Resolution Professional (IRP) was appointed, who then constituted a Committee of Creditors (CoC) with State Bank of India as the sole member. Subsequently, the CoC replaced the IRP with Mr. Manjul Mittal as the Resolution Professional (RP). Despite efforts to find a resolution, including inviting Expressions of Interest (EOI), all prospective resolution applicants withdrew. Consequently, the CoC decided to liquidate the Corporate Debtor.

## Facts

M/s Sainsons Pulp and Papers Limited initiated CIRP under Section 10 of IBC, which was admitted on 03.03.2020. An IRP was appointed and a CoC was formed with State Bank of India as the sole member. The IRP was later replaced by Mr. Manjul Mittal as RP. Form G was issued to invite Expressions of Interest (EOI). Two EOIs were received, but both prospective resolution applicants withdrew. The CoC, in its meeting on 30.12.2020, resolved to liquidate the Corporate Debtor and appoint Mr. Manjul Mittal as Liquidator. The liquidation cost is estimated at ₹40.59 Lakhs, to be borne by the financial creditor. The Adjudicating Authority considered the submissions and ordered liquidation under Section 33 of the Code. The RP, Mr. Manjul Mittal, was appointed as liquidator with a fee

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Sainsons Pulp and Papers Limited, should be liquidated under …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass a liquidation order if

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**Reasoning:** The court reasoned that the CoC had resolved to liquidate the Corporate Debtor in its

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** In this case, the CoC's decision to liquidate, coupled with the absence of a

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Respondents:** M/s Sainsons Pulp…; State Bank of…

## Timeline

- **2020-03-03 — CIRP Init…**: Petition for initiation of CIRP process by the Corporate Debtor under Section 10 of the…
- **2020-05-20 — CoC Form…**: The IRP constituted the Committee of Creditors (CoC) with the “State Bank of India” as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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