# In the matter of SBS Transpole Logistics Private Limited I.A. 2084-ND-2021 in Company Petition No. (IB)-1373(ND)2019

> NCLT judgment dated 2021-07-20. Citation: TCN-2021-NCLT-01672. The case involves a dispute over the constitution of the Stakeholders' Consultation Committee…

- **Court:** NCLT
- **Order date:** 20 Jul 2021
- **Citation:** TCN-2021-NCLT-01672
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sbs-transpole-logistics-private-limited-ia-2084-nd-2021-in-company-petition-no-i-0965e1ce

## Summary

### Background

The case involves a dispute over the constitution of the Stakeholders' Consultation Committee (SCC) during the liquidation process of SBS Transpole Logistics Private Limited. The applicant, Mr. Vivek Shukla, an ex-director and shareholder, challenges the inclusion of M/s Global Enterprise Logistics Pte. Ltd. (Respondent No. 2) as the representative of the shareholders in the SCC. The applicant contends that he, along with two other shareholders, nominated himself as the representative, constituting a majority in number, and that Respondent No. 2 has a conflict of interest due to pending arbitration proceedings with the Corporate Debtor.

## Facts

M/s Advance Cargo Movers (India) Private Limited, the Operational Creditor, initiated CIRP against M/s. SBS Transpole Logistics Private Limited, the Corporate Debtor, under Section 9 of IBC 2016. CIRP was initiated on 2019-09-04, and Mr. Mohan Lal Jain was appointed as the Interim Resolution Professional, later confirmed as RP on 2019-11-01. Liquidation proceedings commenced on 2020-12-16, with Mr. Mohan Lal Jain appointed as the Liquidator. Mr. Vivek Shukla, an ex-director and shareholder holding 8.33% of the Corporate Debtor's shares, filed an application challenging the composition of the Stakeholders' Consultation Committee (SCC). His grievance was the inclusion of M/s Global Enterprise Logistics Pte. Ltd. (Respondent No. 2), holding 70.37% shares, as the

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## Issues and analysis

### Issue 1: Whether the nomination of Respondent No. 2 as representative of Shareholders in class made by the …

**Ratio:** The ratio is that Regulation 31A(3) of the IBBI (Liquidation Process) Regulations, 2016,

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**Reasoning:** The court reasoned that the liquidator erred in applying Regulation 31A(4) because a

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**Interpretation:** The interpretation of Regulation 31A(3) and 31A(4) hinges on whether a 'failure

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**Application:** In this specific case, the court applied the ratio and reasoning by holding

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** Vivek S…
- **Respondents:** SBS Transpole…; Mohan Lal…

## Timeline

- **2019-09-04 — CIRP Init…**: CIRP initiated against SBS…
- **2019-11-01 — RP Appoin…**: Mr. Mohan Lal Jain confirmed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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