# In the matter of Shri Aster Silicates Ltd. IA 448-2019 in C.P. (IB) No. 366-NCLT-AHM-2018

> NCLT judgment dated 2019-10-01. Citation: TCN-2019-NCLT-01115. The case involves the Corporate Insolvency Resolution Process (CIRP) of Shri Aster Silicates…

- **Court:** NCLT
- **Order date:** 1 Oct 2019
- **Citation:** TCN-2019-NCLT-01115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shri-aster-silicates-ltd-ia-448-2019-in-cp-ib-no-366-nclt-ahm-2018-ab84285f

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of Shri Aster Silicates Ltd. initiated due to a default of Rs. 12,35,000.00. Hasmukhbhai Somabhai Patel, an Operational Creditor, filed CP(IB)No. 366/2018 under Section 9 of the Insolvency and Bankruptcy Code, 2016. Parag Sheth was initially appointed as the Interim Resolution Professional (IRP), later replaced by Divyesh Desai. The CIRP period was extended, but the company's operations had ceased since FY 2017, and the CoC members were contributing to maintain the Corporate Debtor during the CIRP.

## Facts

Hasmukhbhai Somabhai Patel, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Shri Aster Silicates Ltd. due to a default of Rs. 12,35,000.00. The petition, CP(IB)No. 366/2018, was admitted on October 15, 2018, with CIRP commencing on October 22, 2018. Parag Sheth was initially appointed as the Interim Resolution Professional (IRP), but Divyesh Desai replaced him following a CoC decision. The CIRP period was extended by 90 days beyond the initial 180 days, expiring on July 18, 2019. The company's operations ceased in FY 2017, and the CoC members were contributing to maintain the Corporate Debtor during the CIRP. The Resolution Professional filed IA No. 448 of 2019 seeking liquidation under Section 33 of the Insolvency and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Shri Aster …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The court considered that the CIRP period had expired, the company's operations had

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**Interpretation:** Section 33 provides a mechanism for liquidation when the CIRP process is not

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**Application:** Given the expiration of the CIRP period, the cessation of operations, and the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Divyesh…
- **Respondents:** Aster Silicates…

## Timeline

- **2018-10-15 — Admission of…**: CP(IB)No. 366/2018 filed by…
- **2018-10-22 — CIRP Commencem…**: Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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