# In the matter of Saraswati Sales Private Limited C.P. (IB) No. 231-KB-2019

> NCLT judgment dated 2019-11-07. Citation: TCN-2019-NCLT-00674. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Nov 2019
- **Citation:** TCN-2019-NCLT-00674
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saraswati-sales-private-limited-cp-ib-no-231-kb-2019-e070ae4a

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by D K Jain Properties Private Limited against Sarswati Sales Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP) was appointed. Public announcements were made, and a Committee of Creditors (CoC) was formed. However, the directors of the corporate debtor failed to provide audited annual accounts and statutory records. The CoC decided to issue an invitation for Expression of Interest, but no request was received.

## Facts

D K Jain Properties Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Sarswati Sales Private Limited. The application was admitted, and CIRP was initiated. Mr. Shashi Agarwal was appointed as the Interim Resolution Professional. A public announcement was made, and a Committee of Creditors (CoC) was formed. The directors of Sarswati Sales Private Limited failed to provide audited annual accounts and statutory records. The CoC decided to issue an invitation for Expression of Interest, but no request for a resolution plan was received. The CoC consented to the liquidation of the corporate debtor. The Resolution Professional reported that there was no cash flow in the company. The court considered the final progress

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the absence of a viable resolution plan …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code allows the Adjudicating Authority to

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**Reasoning:** The court reasoned that no resolution plan was received despite issuing an invitation for

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**Interpretation:** Section 33(2) provides the legal basis for ordering liquidation when resolution

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**Application:** In this case, the Corporate Debtor failed to attract any resolution plans, and

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** D K Jain Propertie…
- **Respondents:** Sarswati Sales…; Sarswati Sales…

## Timeline

- **2019-06-24 — Petition Ad…**: The petition was directed to be admitted, and the Corporate Insolvency Resolution Process…
- **2019-06-27 — Public Annou…**: The IRP submitted a public announcement in Form 'A' which was published in two Newspapers…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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