# In the matter of Shubham Industries Limited I.A. No. 92-CTB-2020 in Connected with CP (IB) No. 117-CTB-2019

> NCLT judgment dated 2021-06-09. Citation: TCN-2021-NCLT-01996. The case involves an application under Section 54 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Jun 2021
- **Citation:** TCN-2021-NCLT-01996
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shubham-industries-limited-ia-no-92-ctb-2020-in-connected-with-cp-ib-no-117-ctb-0157e1bb

## Summary

### Background

The case involves an application under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with IBBI (Liquidation Process) Regulations, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Shubham Industries Limited on 2019-11-14. Mr. Anil Kumar Saraf was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 2019-11-17. The Committee of Creditors (COC) was formed on 2019-12-06, and in its first meeting on 2019-12-11, the COC resolved with a 100% majority that the Corporate Debtor was not a 'going concern' and had no business or assets. Consequently, the COC approved the initiation of the Liquidation Process with a 100% voting share.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Shubham Industries Limited on 2019-11-14. Anil Kumar Saraf was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 2019-11-17. The Committee of Creditors (COC) was formed on 2019-12-06. The first COC meeting was held on 2019-12-11, where the COC resolved with a 100% majority that the Corporate Debtor was not a 'going concern' and had no business or assets. The COC approved the initiation of the Liquidation Process with a 100% voting share. An order dated 2020-01-10 was passed for the initiation of the Liquidation Process. Sunil Kumar Keswani was appointed as the Liquidator. The Liquidator made a public announcement on 2020-01-13, but received no claims from

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should dissolve the Corporate Debtor given that it has no …

**Ratio:** When a corporate debtor has no business operations or assets, and the liquidation process

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**Reasoning:** The court reasoned that after reviewing the documents, it was evident that the Corporate

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**Interpretation:** The interpretation is that if a corporate debtor lacks business operations and

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**Application:** In this case, the Corporate Debtor, Shubham Industries Limited, had no business

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Respondents:** Shubham Industries…
- **Advocates:** Sunil Ke…; Aranni…

## Timeline

- **2019-11-14 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Shubham Industries…
- **2019-11-17 — Public Annou…**: Interim Resolution Professional made…

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