# In the matter of Sheth Metal Pvt. Ltd. MA 1329-2018 In C.P. 153-I&BP-NCLT-MAH-2018

> NCLT judgment dated 2019-01-07. Citation: TCN-2019-NCLT-05318. The Corporate Insolvency Resolution Process (CIRP) was initiated against Sheth Metal Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 7 Jan 2019
- **Citation:** TCN-2019-NCLT-05318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sheth-metal-pvt-ltd-ma-1329-2018-in-cp-153-ibp-nclt-mah-2018-9ad28c33

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sheth Metal Pvt. Ltd. by an order dated 06.06.2018 by the Adjudicating Authority on a section 7 Petition filed by the Financial Creditor, Punjab National Bank. Sanjay Rungta was appointed as Insolvency Resolution Professional and confirmed by the Committee of Creditors (CoC) as Resolution Professional (RP). The RP issued a public announcement on 22.06.2018 for inviting claims from Creditors. Two valuers were appointed for valuing the assets of the Corporate Debtor, and the Valuation Reports dated 31.07.2018 were submitted to the CoC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sheth Metal Pvt. Ltd. on 06.06.2018 following a Section 7 petition by Punjab National Bank, the Financial Creditor. Sanjay Rungta was appointed as the Insolvency Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC). A public announcement was made on 22.06.2018 to invite claims from creditors. Two valuers were appointed to assess the Corporate Debtor's assets, and valuation reports were submitted to the CoC on 31.07.2018. The statutory 180-day period for submitting a resolution plan ended on 03.10.2018, but no plan was received. In a CoC meeting on 12.10.2018, Punjab National Bank, the sole member with 100% voting rights, resolved

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Sheth Metal Pvt. Ltd., should be liquidated under Section 33 of the …

**Ratio:** Section 33 of the Insolvency & Bankruptcy Code, 2016, provides for the liquidation of

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**Reasoning:** The court reasoned that since the statutory period of 180 days for submitting a

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**Interpretation:** Section 33 is interpreted to mean that if a resolution plan is not feasible

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**Application:** In this case, the absence of a resolution plan, coupled with the CoC's

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Respondents:** Sheth Metal Pvt.…

## Timeline

- **2018-06-06 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-06-22 — Public Annou…**: Public announcement issued for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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