# In the matter of SDS Steels Private Limited MA-238-2018 in CP-187- (IB)-2018

> NCLT judgment dated 2018-07-30. Citation: TCN-2018-NCLT-01049. The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.SDS…

- **Court:** NCLT
- **Order date:** 30 Jul 2018
- **Citation:** TCN-2018-NCLT-01049
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sds-steels-private-limited-ma-238-2018-in-cp-187-ib-2018-07dc39c4

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.SDS Steels Private Limited. The CIRP was initiated by the Tribunal's order dated 02.04.2018, appointing an Interim Resolution Professional (IRP). The appointment was later approved by the Committee of Creditors (CoC). The Resolution Professional (RP) received one claim from SREI Equipment Finance Ltd. No other claims were received. During the CIRP, the RP found that the corporate debtor's registered office was only vacant land. The annual accounts of the corporate debtor were made only up to 31.03.2010. Customs officials raided the office of the corporate debtor in 2010-11, and the CBI raided the office in 2012, seizing documents. All bank accounts of the corporate debtor were

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s.SDS Steels Private Limited on 02.04.2018. Mrs. Revathi Sridharan was appointed as the Interim Resolution Professional (IRP), and later approved as the Resolution Professional (RP) by the Committee of Creditors (CoC). The RP received one claim from SREI Equipment Finance Ltd. The RP found that the registered office of the corporate debtor was only vacant land. The annual accounts were only made up to 31.03.2010. Customs officials raided the office in 2010-11, and the CBI raided the office in 2012, seizing documents. All bank accounts were seized. Before the first CoC meeting, it was revealed that Bank of India had sold the assets of the corporate debtor mortgage to the Bank along with other

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## Issues and analysis

### Issue 1: Whether the application for liquidation under section 33(2) of IBC, 2016 and for dissolution of the …

**Ratio:** The Tribunal has the power to approve the application for liquidation and dissolution of

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**Reasoning:** The Tribunal reasoned that since there can be no realizable value from the sale of assets

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**Interpretation:** Sections 33(2) and 54 of the IBC, 2016 allow for the liquidation and

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**Application:** In this case, the Tribunal applied the ratio to the facts and found that there

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## Parties

- **Judges:** K. Anantha…; S. VIJAYARA…
- **Appellants:** Mrs.Revathi…
- **Respondents:** M/s.SDS Steels…; M/s.SREI Equipment…
- **Advocates:** Revathi Sri…

## Timeline

- **2018-04-02 — CIRP Init…**: The Tribunal initiated the CIRP by order dated 02.04.2018, appointing the Applicant as…
- **2018-04-16 — Public Annou…**: The Applicant received 1 claim against the public announcement made as per provisions of…

## 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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