# 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-02919. The case involves an application filed by the Resolution Professional of Sarawgi Builders &…

- **Court:** NCLT
- **Order date:** 25 Feb 2021
- **Citation:** TCN-2021-NCLT-02919
- **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-a38157f4

## Summary

### Background

The case involves an application filed by the Resolution Professional of Sarawgi Builders & Promoters Private Limited, the Corporate Debtor, seeking liquidation due to the absence of any received resolution plan despite the publication of Form 'G'. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 17/10/2019. Mr. Nitesh Kumar More was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional. Public announcement was made in Financial Express and Ekdin newspapers on 30/10/2019, inviting claims from creditors.

## Facts

The Resolution Professional (RP) of Sarawgi Builders & Promoters Private Limited filed an application for liquidation due to the absence of a resolution plan. The CIRP was initiated on 17/10/2019, and Mr. Nitesh Kumar More was appointed as the RP. A public announcement was made on 30/10/2019. Bank of India filed a claim of Rs.30,26,57,547/-, but the RP did not take adequate steps to address this claim. The Committee of Creditors (CoC) was reconstituted on 22/01/2020. Form 'G' was published on 23/01/2020, but no Expression of Interest was received. The CoC resolved to liquidate the company with 100% voting share on 20/06/2020. The last available Balance Sheet was up to 2016-17. A forensic audit could not be completed due to partial cooperation from the Corporate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order liquidation of the Corporate Debtor in the absence …

**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 and the Committee of

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**Interpretation:** The interpretation of Section 33(1)(a) and 33(2) of the IBC is that the

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**Application:** In this case, no resolution plan was received, and the CoC approved liquidation

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## Parties

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

## Timeline

- **2019-10-17 — Initiation…**: The Adjudicating Authority ordered the…
- **2019-10-30 — Public Annou…**: Public announcement was made in Financial Express and Ekdin newspapers, inviting claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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