# In the matter of Shivek Labs Limited CA No.102-2018 In CP(IB)No.36-Chd-CHD-2018

> NCLT judgment dated 2018-05-17. Citation: TCN-2018-NCLT-01390. The case pertains to the insolvency resolution process of Shivek Labs Limited, initiated under…

- **Court:** NCLT
- **Order date:** 17 May 2018
- **Citation:** TCN-2018-NCLT-01390
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivek-labs-limited-ca-no102-2018-in-cpibno36-chd-chd-2018-36406550

## Summary

### Background

The case pertains to the insolvency resolution process of Shivek Labs Limited, initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 06.07.2017. An Interim Resolution Professional was appointed, and a moratorium was declared. Subsequently, on the application of Punjab National Bank, Rajiv Khurana was appointed as the Resolution Professional on 07.09.2017. The resolution process period of 180 days expired on 02.01.2018, and it was extended by 90 days until 08.01.2018.

## Facts

Shivek Labs Limited underwent an insolvency resolution process initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 06.07.2017. Rajiv Khurana was appointed as the Resolution Professional on 07.09.2017. The initial 180-day resolution period expired on 02.01.2018 and was extended by 90 days until 08.01.2018. The Committee of Creditors (COC), comprising Punjab National Bank, Canara Bank, and IDBI Bank, held multiple meetings to consider resolution plans. Sunil Guglani, the Promoter-Director, initially assured submission of a resolution plan, but the introduction of Section 29A disqualified promoter-directors. The COC invited expressions of interest and received four bids, which were discussed in subsequent meetings.

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors (COC) was justified in recommending the liquidation of the …

**Ratio:** Section 30(4) of the Code states that the COC may approve a resolution plan by a vote of

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**Reasoning:** The COC, comprising Punjab National Bank, Canara Bank, and IDBI Bank, considered several

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**Interpretation:** Section 30(4) provides the COC with the authority to approve or reject

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**Application:** In this case, the COC's decision to recommend liquidation was based on the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** Shivek Labs…

## Timeline

- **2017-06-07 — Petition Ad…**: The petition for insolvency…
- **2017-09-07 — Appointment of…**: Rajiv Khurana was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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