# In the matter of Sneha Engineering Equipment Pvt. Ltd. IA (IBC)-464-2021 in CP (IB) No. 815-9-HDB-2019

> NCLT judgment dated 2021-09-08. Citation: TCN-2021-NCLT-01157. The Resolution Professional filed an application for the liquidation of the Corporate Debtor…

- **Court:** NCLT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLT-01157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sneha-engineering-equipment-pvt-ltd-ia-ibc-464-2021-in-cp-ib-no-815-9-hdb-2019-a2d743b3

## Summary

### Background

The Resolution Professional filed an application for the liquidation of the Corporate Debtor due to the non-receipt of a resolution plan during the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor had initiated the insolvency petition, which was admitted by the Tribunal.

## Facts

The Resolution Professional of M/s. Sneha Engineering Equipment Pvt Ltd filed an application under Section 33 (2) of the Insolvency and Bankruptcy Code, 2016, seeking the liquidation of the Corporate Debtor. This application was necessitated by the failure to receive a resolution plan during the Corporate Insolvency Resolution Process (CIRP). The insolvency petition against the Corporate Debtor was initially filed by the Operational Creditor, M/s. MJR Equipments Pvt Ltd, under Section 9 of the Code. The Tribunal admitted this petition on February 22, 2021, and appointed Shri. Satyanarayana Veera Venkata Chebrolu as the Interim Resolution Professional. The Resolution Professional undertook necessary steps, including issuing notices, but found that the Corporate Debtor's

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated due to the non-receipt of a resolution plan and …

**Ratio:** The Adjudicating Authority is obligated to initiate the liquidation process under Section

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**Reasoning:** The NCLT observed that the Corporate Debtor was non-functioning, lacked fixed assets, and

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**Interpretation:** The NCLT interpreted Section 33(1)(a) of the Code in light of the Supreme

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**Application:** Given the CoC's resolution for liquidation, the Corporate Debtor's

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## Parties

- **Judges:** Madan B.…; Veera Brahma Rao…
- **Appellants:** Satyanarayana…; Satyanarayana…
- **Respondents:** M/s. Sneha…; M/s. MJR Equipment…
- **Advocates:** D. Gopala K…; For the Applicant:…

## Timeline

- **February 22, 2021 — Insolvency Petition…**: The insolvency petition filed by M/s. MJR Equipments Pvt Ltd against M/s. Sneha…
- **August 14, 2021 — 4th CoC M…**: The Committee of Creditors (CoC) held its 4th meeting and resolved to file an application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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