# 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-00881. 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-00881
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shambhu-mahadev-sugar-allied-industries-ltd-ia-3925-2019-in-cpib-3062mb-2018-77e42dbc

## 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 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 to liquidate the Corporate Debtor Company and appoint a liquidator. The RP stated that the Corporate Debtor Company has no assets, as they were sold by the earlier consortium holder. The actions of the consortium holder are being challenged by the RP in the High Court. The RP's fees of Rs. 13,34,924/- are outstanding and payable by the Committee of Creditors (CoC) despite a previous order dated 29.07.2021 directing the CoC to pay. The CoC has not complied with the order to pay the RP's fees.

## 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, allows the Adjudicating Authority to pass a

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**Reasoning:** The court is considering the RP's application for liquidation based on the premise that

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation proceedings

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**Application:** The RP's application is based on the claim that all assets have been sold. The

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## Parties

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

## Timeline

- **2021-07-29 — Previous…**: The CoC was directed to share the…
- **2021-10-04 — Current H…**: Hearing on RP's application for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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