# In the matter of Servalakashmi Paper Ltd. MA-678-2019 in CP-514-IB-2017

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02191. The case involves Servalakshmi Paper Ltd., which was undergoing a Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02191
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/servalakashmi-paper-ltd-ma-678-2019-in-cp-514-ib-2017-26462a7c

## Summary

### Background

The case involves Servalakshmi Paper Ltd., which was undergoing a Corporate Insolvency Resolution (CIR) process. As no resolution plan was available, the company was ordered to be liquidated on 2018-04-24. An appeal was filed against the liquidation order before the NCLAT. The NCLAT, in its order dated 2019-02-27, directed under Para 18 for approval of the scheme, if any, filed under Section 230 of the Companies Act, 2013, which could be beneficial for revival of the Corporate Debtor. Subsequently, the Liquidator filed an application seeking direction to constitute a Committee of Creditors (CoC) to ascertain their opinion on the schemes filed by two applicants.

## Facts

Servalakshmi Paper Ltd. was undergoing a CIR process but lacked a resolution plan, leading to a liquidation order on 2018-04-24. An appeal was filed, and the NCLAT directed consideration of schemes under Section 230 of the Companies Act, 2013. The Liquidator then applied to form a CoC to assess these schemes. The NCLAT had given 90 days for working out the Scheme under Section 230 of the Companies Act, 2013, which has already been expired.

## Issues and analysis

### Issue 1: Whether the Liquidator should be permitted to constitute a Committee of Creditors to ascertain …

**Ratio:** The court has the authority to permit the Liquidator to constitute a Committee of

…

**Reasoning:** The court reasoned that it was appropriate to grant permission to the Liquidator to

…

**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code

…

**Application:** The ratio and reasoning were applied to the specific facts of the case, where

…

## Parties

- **Judges:** CH. MOHD SHARIEF…; Shri. ANIL…
- **Appellants:** S DHANAPAL…
- **Respondents:** SERVALAKSHMI…

## Timeline

- **2018-04-24 — Liquidation…**: Servalakshmi Paper Ltd. was ordered to be liquidated by the Authority as no resolution…
- **2019-02-27 — NCLAT Or…**: The Hon'ble NCLAT passed an order in the Company Appeal (AT) (Insolvency) No.224/2018…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/servalakashmi-paper-ltd-ma-678-2019-in-cp-514-ib-2017-26462a7c