# In the matter of Sarash Exports Services Private Limited IA 5175-2021 in Company Petition No. (IB) - 05 (ND)-2019

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00049. The case involves an application filed by the Resolution Professional under Section 33(2) of…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarash-exports-services-private-limited-ia-5175-2021-in-company-petition-no-ib-0-19203a22

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the Corporate Debtor, Sarash Exports Services Private Limited. Additionally, another application, IA 4559/ND/2021, was filed by the same applicant for the appointment of Mr. Umesh Chand Goyal as the Liquidator of the Corporate Debtor. The operational creditor had previously filed an application under Section 9 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted by the Tribunal on 30.09.2019. The CIRP period was extended due to a nationwide lockdown. The CoC resolved to initiate liquidation proceedings as no resolution

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## Facts

Ashtbhuj Ocean Movers Pvt. Ltd., the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Sarash Exports Services Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application was admitted on 30.09.2019. Mr. Rajeev Raizada was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and constituted a Committee of Creditors (CoC). Due to a nationwide lockdown, the CIRP period was extended. The CoC decided to appoint a new Resolution Professional, replacing the previous one. The CoC resolved to initiate liquidation proceedings as no resolution plan was received after the publication of Form-G. The CoC approved the appointment of Mr. Umesh Chand Goyal

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(2) of the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of

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**Reasoning:** The Tribunal reasoned that since no resolution plan was approved by the CoC within the

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP fails to produce a viable

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**Application:** In this case, because no resolution plan was approved by the CoC, the Tribunal

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## Parties

- **Judges:** Sh. Dharminder…; SH. PRASANTA…
- **Appellants:** Sushil…
- **Respondents:** M/s Sarash…; Ashtbhuj Ocean…

## Timeline

- **2019-09-30 — CIRP Init…**: Application under Section 9 of the Code was admitted, initiating CIRP against the…
- **2020-08-31 — CoC Meet…**: 6th meeting of CoC where the erstwhile resolution professional published the Invitation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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