# 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-00057. The case involves an application for liquidation of the Corporate Debtor, Sarash Exports…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00057
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarash-exports-services-private-limited-ia-5175-2021-in-company-petition-no-ib-0-74eece8e

## Summary

### Background

The case involves an application for liquidation of the Corporate Debtor, Sarash Exports Services Private Limited. The Resolution Professional filed IA 5175/ND/2020 under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for liquidation. IA 4559/ND/2021 was also filed for the appointment of Mr. Umesh Chand Goyal as the Liquidator. The operational creditor had previously filed an application under Section 9 of the Code for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was admitted on 30.09.2019. Due to the nationwide lockdown, the CIRP period was extended until 13.12.2020. The CoC resolved to initiate liquidation proceedings as no resolution plan was received.

## Facts

Ashtbhuj Ocean Movers Pvt. Ltd., an operational creditor, initiated proceedings against M/s Sarash Exports Services Private Limited, the corporate debtor. An application under Section 9 of the Insolvency and Bankruptcy Code (IBC) was filed for initiating the Corporate Insolvency Resolution Process (CIRP). The application was admitted on 2019-09-30. Mr. Rajeev Raizada was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement and constituted the Committee of Creditors (CoC). Due to the nationwide lockdown, the CIRP period was extended. The CoC decided to appoint a new Resolution Professional. No resolution plan was received after the publication of Form-G. The CoC resolved to initiate liquidation proceedings. Mr. Umesh Chand Goyal was

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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 court reasoned that since no resolution plan was approved by the CoC and the CIRP

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when the CIRP process

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**Application:** In this case, the CoC did not approve any resolution plan, and the CIRP period

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## Parties

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

## Timeline

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

## 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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