# In the matter of Shree Padmavati Sortex Pvt. Ltd. IA 628-2019 in C.P. (I.B) No. 571-NCLT-AHM-2018

> NCLT judgment dated 2019-11-27. Citation: TCN-2019-NCLT-00419. The case pertains to an Interlocutory Application (IA 628 of 2019) filed by the Resolution…

- **Court:** NCLT
- **Order date:** 27 Nov 2019
- **Citation:** TCN-2019-NCLT-00419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-padmavati-sortex-pvt-ltd-ia-628-2019-in-cp-ib-no-571-nclt-ahm-2018-78e7c147

## Summary

### Background

The case pertains to an Interlocutory Application (IA 628 of 2019) filed by the Resolution Professional (RP) of Shree Padmavati Sortex Pvt. Ltd. under Sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code, seeking liquidation of the Corporate Debtor Company. The Committee of Creditors (CoC) in its 5th meeting held on 2019-08-29, with 100% majority, resolved for liquidation of the Corporate Debtor. The CoC reordered the reason for liquidation because no expression of interest (EOI) was received from potential resolution applicants despite paper publications. The 180-day period of the Corporate Insolvency Resolution Process (CIRP) was to be over on 2019-09-25. The CoC recommended the present Resolution Professional, Mr. Vinodkumar Surendralal Shah, to

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## Facts

Shree Padmavati Sortex Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP), Vinodkumar Surendralal Shah, filed an application (IA 628 of 2019) seeking liquidation of the company under Sections 33(1), 33(2), and 34(1) of the Insolvency and Bankruptcy Code. The Committee of Creditors (CoC) resolved for liquidation with 100% majority in its meeting on 2019-08-29, citing the lack of any Expression of Interest (EOI) from potential resolution applicants despite public advertisement. The CIRP period of 180 days was to end on 2019-09-25. The CoC recommended the continuation of Vinodkumar Surendralal Shah as the Liquidator. The suspended management, through Director Prakashkumar Vardhmanbhai Shah, did not object to the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Shree Padmavati Sortex Pvt. Ltd., …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in decisions

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**Reasoning:** The Adjudicating Authority relied on the Supreme Court's decisions in Sashidhar Vs.

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**Interpretation:** The legal issue centers on the extent to which the Adjudicating Authority can

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**Application:** In this case, the CoC had resolved for liquidation with 100% majority due to

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## Parties

- **Judges:** Harihar Prakash…
- **Respondents:** Shree Padmavati…
- **Advocates:** Khyati Pu…; Mipen Si…; +5 more

## Timeline

- **2019-08-29 — CoC Meet…**: The Committee of Creditors (CoC) in its 5th meeting resolved for liquidation of the…
- **2019-09-25 — CIRP Peri…**: The 180-day period of the Corporate Insolvency…

## 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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