# In the matter of SKC Retail Limited MA-44-2018 In TCP-319-IB-2017

> NCLT judgment dated 2018-06-22. Citation: TCN-2018-NCLT-01234. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s.…

- **Court:** NCLT
- **Order date:** 22 Jun 2018
- **Citation:** TCN-2018-NCLT-01234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skc-retail-limited-ma-44-2018-in-tcp-319-ib-2017-740843c3

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. SKC Retail Limited. The CIRP was initiated by the Financial Creditor, M/s. Iffco Tokio General Insurance Co. Ltd., under Section 7 of the Insolvency and Bankruptcy Code (I&B Code), 2016. The CIRP commenced on 2017-07-12, with Mr. V. Mahesh appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoCs) extended the CIRP till 2018-04-21. The Corporate Debtor ceased operations, and its directors failed to provide necessary financial information. An asset was sold by the State Bank of India before the CIRP's initiation. The CoCs recommended liquidation due to the absence of assets and the cessation of business.

## Facts

The Financial Creditor, M/s. Iffco Tokio General Insurance Co. Ltd., initiated CIRP against the Corporate Debtor, M/s. SKC Retail Limited, under Section 7 of the I&B Code. The CIRP commenced on 2017-07-12, and Mr. V. Mahesh was appointed as the IRP. The CoCs extended the CIRP till 2018-04-21. The Corporate Debtor ceased operations, and its directors failed to provide necessary financial information. An asset was sold by the State Bank of India before the CIRP's initiation. The CoCs, in a meeting held on 2018-04-17, unanimously recommended liquidation under Section 33(2) of the I&B Code due to the absence of assets and the cessation of business. The RP filed MA/44/2018 seeking liquidation. The Adjudicating Authority ordered the liquidation of the Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. SKC Retail Limited, should be liquidated under Section 33(2) of …

**Ratio:** Section 33(2) of the I&B Code, 2016 allows for the liquidation of a corporate debtor

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**Reasoning:** The CoCs unanimously recommended liquidation due to the absence of assets and the

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**Interpretation:** Section 33(2) provides a mechanism for liquidation when the CIRP fails to

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**Application:** Given the CoCs' recommendation and the absence of assets, the Adjudicating

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** V. Ma…
- **Respondents:** SKC Retail…; IFFCO TOKIO…

## Timeline

- **2017-07-12 — CIRP Commen…**: CIRP initiated against M/s. SKC Retail…
- **2017-12-18 — CoC Meet…**: CoCs decided to extend…

## Legal provisions

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

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