# In the matter of Skyhigh Infraprojects Private Limited CP(IB)358-ALD-2019

> NCLT judgment dated 2020-04-03. Citation: TCN-2020-NCLT-01414. The case involves an application filed by one of the Promoter-Directors of the Corporate Debtor…

- **Court:** NCLT
- **Order date:** 3 Apr 2020
- **Citation:** TCN-2020-NCLT-01414
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skyhigh-infraprojects-private-limited-cpib358-ald-2019-1049a32e

## Summary

### Background

The case involves an application filed by one of the Promoter-Directors of the Corporate Debtor Company seeking a stay over Agenda point No. 6 of the CoC meeting held on March 28, 2020, concerning the sale of some of the Corporate Debtor's assets to pay salaries to daily wagers and employees. The Resolution Professional (RP) stated that the Promoter Directors have not provided necessary information and account statements. The Corporate Debtor's account was admitted into the Company Petition on January 7, 2020. The CoC decided to sell part of the company's assets to meet expenditures, especially to pay daily wagers.

## Facts

An application was filed by a Promoter-Director of the Corporate Debtor seeking a stay on the sale of assets (Agenda point No. 6 of the CoC meeting on 2020-03-28). The purpose of the sale was to pay salaries to daily wagers and employees. The Corporate Debtor's account was admitted into the Company Petition on 2020-01-07. The RP claimed that the Promoter-Directors had not provided necessary information and account statements. The CoC decided to sell part of the company's assets to meet expenditures, especially to pay daily wagers. The assets intended for sale included cement, iron bars, and a JCB machine. The Promoter-Director's counsel argued that no dues were payable before the admission of the Company Petition. The RP was permitted to sell cement stock, but the sale

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## Issues and analysis

### Issue 1: Whether the CoC's decision to sell assets of the Corporate Debtor to pay daily wagers and employees …

**Ratio:** In a distress company, decisions should be made to meet immediate needs while considering

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**Reasoning:** The court recognized the need to address the immediate financial needs of the Corporate

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**Interpretation:** The court interpreted the IBC's provisions to allow for flexibility in

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**Application:** The court applied this reasoning to the specific facts by allowing the sale of

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## Parties

- **Judges:** SHRI. B.S.V…
- **Appellants:** Anil…
- **Respondents:** SKY HIGH INFRAPROJ…; MR.AMIT AGRAWAL(RP…

## Timeline

- **2020-01-07 — Admission of Company…**: The Corporate Debtor's account was…
- **2020-03-28 — CoC Meet…**: CoC meeting held to discuss the sale of assets to pay salaries to daily wagers and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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