# In the matter of Shashi Oils and Fats Pvt. Ltd..CA No. 143 of 2021 in CP (IB) No. 140-ALD-2017

> NCLT judgment dated 2021-07-15. Citation: TCN-2021-NCLT-01728. The case involves an application filed by the Liquidator for Shashi Oils and Fats Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 15 Jul 2021
- **Citation:** TCN-2021-NCLT-01728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shashi-oils-and-fats-pvt-ltdca-no-143-of-2021-in-cp-ib-no-140-ald-2017-350e0e47

## Summary

### Background

The case involves an application filed by the Liquidator for Shashi Oils and Fats Pvt. Ltd. under Section 54 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the dissolution of the Corporate Debtor. An order for liquidation of the Corporate Debtor was previously passed by the Adjudicating Authority on 21.01.2020. Public announcement was made on 25.01.2020. The applicant intimated the ROC, Kanpur, and various statutory authorities about the initiation of liquidation proceedings. A sole secured creditor, ASREC (India) Ltd., had submitted a proposal for One-Time Settlement (OTS), which later failed. The assets of the Corporate Debtor were included in the liquidation estate. A claim from an unsecured Operational Creditor was received, examined, and admitted. A

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## Facts

On 21.01.2020, the Adjudicating Authority ordered the liquidation of Shashi Oils and Fats Pvt. Ltd. ASREC (India) Ltd., the sole secured creditor, proposed an OTS, which failed. The liquidator received a claim from an unsecured Operational Creditor. A Stakeholders Consultation Committee (SCC) was formed. An e-auction was conducted, and HAS Traders emerged as the successful bidder with a bid of Rs. 3.758 crores. The successful bidder deposited the amount in the Corporate Debtor's ICICI Bank account. A sale certificate was issued on 28.09.2020, and possession was handed over on 01.10.2020. The security agency contract with BR India Security Service was canceled w.e.f. 01.10.2020. The liquidator released Rs. 3.50 to the sole secured creditors and deducted his professional

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, Shashi Oils & Fats Pvt. Ltd., …

**Ratio:** Section 54 of the IBC, 2016, provides for the dissolution of a corporate debtor after the

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**Reasoning:** The Tribunal observed that the company had been completely wound up and its assets had

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**Interpretation:** Section 54 of the IBC allows for the dissolution of a corporate debtor when the

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**Application:** In this case, the liquidator had completed the liquidation process, sold the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** ASREC (Indi…
- **Respondents:** SHASHI OILS AND…; M/s Shashi Oils…

## Timeline

- **2020-01-21 — Liquidation…**: Adjudicating Authority passed an order for…
- **2020-01-25 — Public Annou…**: Public announcement was made…

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