# In the matter of Shanti Equities Pvt. Ltd. CA No. 158-2019 in (IB)-1068-ND-2018

> NCLT judgment dated 2019-05-14. Citation: TCN-2019-NCLT-03315. The case involves an application filed by the Interim Resolution Professional (IRP) under Rule…

- **Court:** NCLT
- **Order date:** 14 May 2019
- **Citation:** TCN-2019-NCLT-03315
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shanti-equities-pvt-ltd-ca-no-158-2019-in-ib-1068-nd-2018-0de5fa54

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Rule 11 of NCLT Rules. The IRP reported that no claims were filed by creditors, and the only claim filed by the Operational Creditor was rejected. Consequently, no Committee of Creditors (COC) was formed. The IRP also stated that the Corporate Debtor was untraceable, and no directors were found at their residential addresses. An earlier application under Section 19(2) and 60(5) of the IBC was filed, but service could not be effected due to a lack of details regarding the Corporate Debtor and its directors.

## Facts

Ushasree Tea Private Limited filed an application against Shanti Equities Private Limited under Section 9 of the IBC. The IRP, appointed for Shanti Equities Private Limited, reported that no claims were filed by creditors, and the only claim by the Operational Creditor was rejected. The Corporate Debtor, Shanti Equities Private Limited, was untraceable, and its directors were not found at their residential addresses. The IRP's efforts to obtain information about the Corporate Debtor were unsuccessful. The Operational Creditor incurred expenses exceeding the claim amount and requested the closure of the CIRP. The IRP's report indicated the non-availability of balance sheets and annual returns, except for one from 2011-12. The MCA website showed the directors' details,

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be terminated due to the …

**Ratio:** The CIRP can be terminated if its continuation is deemed meaningless and futile,

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**Reasoning:** The court reasoned that continuing the CIRP would serve no purpose as the Corporate

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**Interpretation:** This interpretation suggests that the IBC aims for efficient resolution and

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**Application:** In this case, the court applied the ratio by considering the IRP's report, the

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** Ushasree Tea…
- **Respondents:** Shanti Equities…

## Timeline

- **2019-02-27 — CIRP Init…**: CIRP initiated vide…
- **2019-05-14 — Order Del…**: Order delivered on…

## 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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