# In the matter of Sarawgi Builders & Promoters Private Limited IA No. 39-KB-2021 in CP (IB) No. 1572-KB-2018

> NCLT judgment dated 2021-02-25. Citation: TCN-2021-NCLT-02921. The case involves an application filed by the Resolution Professional (RP) of Sarawgi Builders…

- **Court:** NCLT
- **Order date:** 25 Feb 2021
- **Citation:** TCN-2021-NCLT-02921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sarawgi-builders-promoters-private-limited-ia-no-39-kb-2021-in-cp-ib-no-1572-kb-86b2f897

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Sarawgi Builders & Promoters Private Limited, the Corporate Debtor, seeking liquidation due to the absence of any resolution plan despite the publication of Form 'G'. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 17/10/2019. The RP was confirmed at the first meeting of the Committee of Creditors (CoC) held on 15/11/2019. Public announcement was made on 30/10/2019, inviting claims from creditors. Bank of India filed a claim, but the form was unsigned and lacked documents. The CoC was reconstituted on 22/01/2020. The 3rd CoC meeting indicated a resolution for liquidation passed with 100% voting share.

## Facts

Kanwaljit Singh, operating as Gobind Shuttering Store, is the Operational Creditor. Sarawgi Builders & Promoters Private Limited is the Corporate Debtor. The CIRP was initiated against the Corporate Debtor on 17/10/2019. Mr. Nitesh Kumar More is the Resolution Professional. No resolution plan was received despite the publication of Form 'G'. Bank of India filed a claim of Rs.30,26,57,547/-, but the claim form was unsigned and lacked documents. The Committee of Creditors (CoC) was reconstituted on 22/01/2020. The 3rd CoC meeting indicated a resolution for liquidation passed with 100% voting share. The last available Balance Sheet on the MCA Portal was only up to 2016-17. The RP cited COVID-19 and partial cooperation from the Corporate Debtor as reasons for not

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## Issues and analysis

### Issue 1: Whether the application for liquidation filed by the Resolution Professional should be allowed due …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code mandates that the Adjudicating

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**Reasoning:** The court reasoned that since no resolution plan was received despite the publication of

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**Interpretation:** Section 33(1)(a) is interpreted as a mandatory provision that compels the

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**Application:** In this case, since no resolution plan was received, the court applied Section

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Sarawgi Builders…

## Timeline

- **2019-10-17 — Initiation…**: Order dated 17/10/2019 ordered initiation…
- **2019-11-15 — Confirmatio…**: Interim Resolution Professional confirmed as the Resolution Professional at the first…

## 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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