# In the matter of Shree Shyam Pulp and Board Mills Ltd. (IB)-386(PB)-2018

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02242. The case pertains to an application under Section 33(2) of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02242
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-shyam-pulp-and-board-mills-ltd-ib-386pb-2018-c775e4be

## Summary

### Background

The case pertains to an application under Section 33(2) of the Insolvency and Bankruptcy Code (IBC) for the liquidation of the Corporate Debtor, Shree Shyam Pulp And Mills Ltd. The application was based on a resolution passed by the Committee of Creditors (CoC) in its 4th meeting held on 06.09.2019, with a majority of 97.56% voting share. The IRP made a public announcement on 29.03.2019 inviting claims from creditors. After receiving claims aggregating to Rs. 359.05 crores from financial creditors and Rs. 11 crores from operational creditors, the IRP collated the claims and constituted the CoC. The IRP was confirmed as RP on 22.04.2019. The RP determined the liquidation value of the company to be Rs. 78.48 crores. Despite multiple invitations for Expression of Interest

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## Facts

UCO Bank initiated Corporate Insolvency Resolution Process (CIRP) against Shree Shyam Pulp And Mills Ltd. under Section 7 of IBC, 2016. The CIRP was admitted on 27.03.2019, and Mr. Rohit Sehgal was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 29.03.2019, inviting claims from creditors. Claims aggregating to Rs. 359.05 crores were received from financial creditors and Rs. 11 crores from operational creditors. The Committee of Creditors (CoC) was constituted, and the IRP was confirmed as the Resolution Professional (RP) on 22.04.2019. The liquidation value of the company was determined to be Rs. 78.48 crores. Despite multiple invitations for Expression of Interest (EOI), only one EOI was received, and no viable resolution plan

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## Issues and analysis

### Issue 1: Whether the application under Section 33(2) of the IBC for liquidation of the Corporate Debtor is …

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

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**Reasoning:** The court reasoned that the CoC, comprising the financial creditors, had already

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that the Adjudicating Authority

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**Application:** In this case, the CoC had voted with a significant majority (97.56%) in favor

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## Parties

- **Judges:** SH. B.S.V.…; SUMITAPURKA…
- **Appellants:** UCO B…
- **Respondents:** Shree Shyam Pulp…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and Bankruptcy…
- **2019-03-27 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP) was admitted against Shree Shyam Pulp And…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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