# In the matter of Shambhu Mahadev Sugar & Allied industries Ltd. IA 3925-2019 in C.P.(IB)-3062(MB)-2018

> NCLT judgment dated 2021-10-04. Citation: TCN-2021-NCLT-00866. The case involves an application filed by the Resolution Professional (RP) seeking an order…

- **Court:** NCLT
- **Order date:** 4 Oct 2021
- **Citation:** TCN-2021-NCLT-00866
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shambhu-mahadev-sugar-allied-industries-ltd-ia-3925-2019-in-cpib-3062mb-2018-6a846102

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) seeking an order under Section 33(2) of the IBC Code, 2016, to put the Corporate Debtor Company into liquidation and appoint a liquidator. The RP contends that the Corporate Debtor Company has no assets, as they were already sold by the earlier consortium holder. The actions of the consortium holder are being challenged by the RP before the Hon'ble High Court, Aurangabad Bench, and are pending adjudication.

## Facts

The Resolution Professional (RP) filed an application under Section 33(2) of the IBC Code, 2016, seeking liquidation of the Corporate Debtor Company. All assets of the Corporate Debtor Company have been sold by the earlier consortium holder, and these actions are under challenge by the RP before the High Court, Aurangabad Bench. The RP's fees of Rs. 13,34,924/- remain unpaid by the Committee of Creditors (CoC), despite a previous order dated 29.07.2021 directing the CoC members to share the fees proportionately. The CoC has failed to comply with this order. The RP seeks the appointment of a liquidator.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor Company should be put into liquidation under Section 33(2) of the IBC …

**Ratio:** Section 33(2) of the IBC Code, 2016, provides the circumstances under which the

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**Reasoning:** The court is considering the RP's application based on the fact that all assets of the

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**Interpretation:** Section 33(2) allows for liquidation when the resolution plan is not approved

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**Application:** The court will apply Section 33(2) to the specific facts of the case,

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Abhyudaya Co. Op.…; Abhyudaya Co-Op…
- **Respondents:** Shambhu Mahadev…

## Timeline

- **2021-07-29 — Previous…**: The CoC was directed to share the…
- **2021-10-04 — Current H…**: Hearing of the matter where the RP's fees remain unpaid and the RP seeks liquidation of…

## 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)

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