# In the matter of SMD Infra Ventures Pvt. Ltd. CA No. 530-2018 In CP (IB) No.52-Chd-Pb-2018

> NCLT judgment dated 2019-01-25. Citation: TCN-2019-NCLT-05158. The Resolution Professional (RP) filed an application for ratifying expenses incurred by the…

- **Court:** NCLT
- **Order date:** 25 Jan 2019
- **Citation:** TCN-2019-NCLT-05158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/smd-infra-ventures-pvt-ltd-ca-no-530-2018-in-cp-ib-no52-chd-pb-2018-a4ae8a85

## Summary

### Background

The Resolution Professional (RP) filed an application for ratifying expenses incurred by the Interim Resolution Professional (IRP)/Resolution Professional during the Corporate Insolvency Resolution Process (CIRP) of M/s SMD Infraventures Pvt. Ltd. and for seeking liquidation of the corporate debtor. The CIRP was initiated following an application by a financial creditor under Section 7 of the Code. An IRP was appointed, and a public announcement was made. The Committee of Creditors (COC) was constituted, but the first meeting faced quorum issues and hostile behavior, leading to adjournment. A subsequent application sought replacement of the IRP, which was rejected. The RP faced challenges in completing the information memorandum due to the non-availability of books of

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## Facts

The Resolution Professional (RP) filed an application seeking ratification of expenses and liquidation of M/s SMD Infraventures Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application by a financial creditor. Deepak Gupta was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (COC) was formed with 436 members, but the initial meeting faced quorum issues and hostile behavior. An application to replace the IRP was rejected. The RP could not complete the information memorandum due to the non-availability of books of accounts and financial statements for the years 2015-16, 2016-17, and 2017-18. The COC voted for liquidation, but the voting share was below the required 66%. The Managing Director of

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## Issues and analysis

### Issue 1: Whether the corporate debtor should be liquidated in the absence of a resolution plan within the …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC) states that if the

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**Reasoning:** The court noted that no resolution plan was received before the expiry of the CIRP

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**Interpretation:** Section 33(1)(a) provides a mandatory requirement for liquidation if no

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**Application:** Since no resolution plan was received within the CIRP period for M/s SMD

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Daljit…
- **Respondents:** SMD Infraventures…; M/s SMD Infra…
- **Advocates:** Arora Vishwas…

## Timeline

- **2018-04-03 — CIRP Init…**: CIRP initiated under Section 7 of the Code following an application by a financial…
- **2018-04-11 — Appointment…**: Shri Deepak Gupta appointed as…

## 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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