# In the matter of Sanjay Strips Pvt Ltd IA No. 147-2018 In CP(IB)No.218-9-HDB-2017

> NCLT judgment dated 2018-07-02. Citation: TCN-2018-NCLT-01217. The case involves an application filed by the Resolution Professional (RP) seeking liquidation…

- **Court:** NCLT
- **Order date:** 2 Jul 2018
- **Citation:** TCN-2018-NCLT-01217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanjay-strips-pvt-ltd-ia-no-147-2018-in-cpibno218-9-hdb-2017-e0a8674f

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking liquidation of Sanjay Strips Private Limited, the Corporate Debtor, under the Insolvency and Bankruptcy Code (IBC). The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by an Operational Creditor, which was admitted on 2017-11-13. The Committee of Creditors (CoC) resolved to initiate liquidation during their meeting on 2018-03-22, as no resolution plan was filed or efforts made to create one. The CIRP period of 180 days expired on 2018-05-12.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sanjay Strips Private Limited following an application by an Operational Creditor, which was admitted on 2017-11-13. The Resolution Professional (RP) was appointed. The Committee of Creditors (CoC) convened and, during their third meeting held on 2018-03-22, resolved to initiate the liquidation process. The CIRP period of 180 days expired on 2018-05-12. No resolution plan was filed, and the RP and CoC made no effort to formulate one. The RP then filed an application seeking liquidation. Notice was served to the Corporate Debtor and its promoters, but they did not appear before the Tribunal. The CoC passed a resolution to proceed with liquidation. The Tribunal noted the expiry of the CIRP period,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Sanjay Strips Private Limited, should be liquidated under the …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code (IBC) stipulates that where the

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**Reasoning:** The Tribunal reasoned that the CIRP period of 180 days had expired on 2018-05-12, and no

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**Interpretation:** Section 33(1) of the IBC is interpreted to mean that liquidation is mandatory

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**Application:** In this case, the CIRP period had expired, no resolution plan was filed, and

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Raj St…
- **Respondents:** Sanjay Strips Pvt…

## Timeline

- **2017-11-13 — CIRP Init…**: The application filed by an Operational Creditor for initiating the Corporate Insolvency…
- **2018-03-22 — CoC Resolution for…**: The Committee of Creditors (CoC) resolved to initiate the liquidation process during…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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