# In the matter of SGP Software Solutions Private Limited I.A. 255-2020 in C.P. (IB) No. 137-BB-2018

> NCLT judgment dated 2020-08-26. Citation: TCN-2020-NCLT-00780. The case originates from an application filed by Mr. Joji Thomas under Section 9 of the I&B…

- **Court:** NCLT
- **Order date:** 26 Aug 2020
- **Citation:** TCN-2020-NCLT-00780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sgp-software-solutions-private-limited-ia-255-2020-in-cp-ib-no-137-bb-2018-e86b1dd8

## Summary

### Background

The case originates from an application filed by Mr. Joji Thomas under Section 9 of the I&B Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against SGP Software Solutions Private Limited. The application was admitted on 2019-09-24, initiating CIRP and appointing Mr. Motappa Thimmarayaswamy as the Interim Resolution Professional (IRP). Public announcement was made on 2019-10-11. The Committee of Creditors (CoC) was formed, initially consisting of a sole financial creditor, Yes Bank. Subsequently, Yes Bank opted out after recovering dues from a corporate guarantor, leading to reconstitution of the CoC with operational creditors. The Resolution Professional published an invitation for Expression of Interest, but no interest was received. The

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## Facts

Mr. Joji Thomas filed CP(IB) No. 137/BB/2018 under Section 9 of the I&B Code, 2016, to initiate CIRP against SGP Software Solutions Private Limited. The NCLT admitted the case on 2019-09-24, initiating CIRP and appointing Mr. Motappa Thimmarayaswamy as IRP. A public announcement was made on 2019-10-11. The CoC was initially comprised of Yes Bank, the sole financial creditor, but Yes Bank later opted out after recovering dues from a corporate guarantor. The CoC was reconstituted with four operational creditors. The RP invited Expressions of Interest, but none were received by 2020-04-23. The CoC authorized the RP to file for liquidation on 2020-06-19. The company's turnover had declined significantly, with the turnover for FY 2018-19 being Rs. 3.59 Crore, 70% less

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## Issues and analysis

### Issue 1: Whether the Resolution Professional complied with the provisions of the Insolvency and Bankruptcy …

**Ratio:** The Resolution Professional is required to comply with the provisions of the Code, 2016,

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**Reasoning:** The court noted that the Resolution Professional had taken the necessary steps as

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**Interpretation:** The Code mandates a structured process for attempting resolution before

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**Application:** In this case, the RP had complied with the procedural requirements of the Code

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Joji Th…
- **Respondents:** SGP Software…

## Timeline

- **2018-01-01 — CP(IB) No. 137/BB/2018…**: Mr. Joji Thomas filed CP(IB) No. 137/BB/2018 under Section 9 of the I&B Code, 2016, to…
- **2019-09-24 — CIRP Init…**: The NCLT admitted the case, initiating CIRP and appointing Mr. Motappa Thimmarayaswamy as…

## 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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