# In the matter of S.N.K.M and Sons Timbers Pvt. Ltd. MA-637-2019 in IBA-273-IB-2019

> NCLT judgment dated 2019-08-30. Citation: TCN-2019-NCLT-01668. The case involves an application (MA/637/2019 in IBA/273/IB/2019) filed under Section 54 of the…

- **Court:** NCLT
- **Order date:** 30 Aug 2019
- **Citation:** TCN-2019-NCLT-01668
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/snkm-and-sons-timbers-pvt-ltd-ma-637-2019-in-iba-273-ib-2019-afd147b2

## Summary

### Background

The case involves an application (MA/637/2019 in IBA/273/IB/2019) filed under Section 54 of the Insolvency and Bankruptcy Code, 2016, concerning M/s. S.N.K.M And Sons Timbers Private Limited. Initially, IBA/273/2019 was filed by Mr. Kishore Kumar Golecha HUF & Anr., financial creditors, under Section 7 of the I&B Code, 2016. The application was admitted on 22.04.2019, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. A moratorium was declared, and Mr. Anil Kumar Khicha was appointed as the Interim Resolution Professional (IRP). The applicant sought an order for the dissolution of the Corporate Debtor.

## Facts

Originally, IBA/273/2019 was filed by Mr. Kishore Kumar Golecha HUF & Anr., the Financial Creditors, under Section 7 of the I&B Code, 2016 against M/s. S.N.K.M and Sons Timbers Private Limited. The Application was admitted on 22.04.2019 whereby the Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor, moratorium was declared and thereafter the Applicant viz. Mr. Anil Kumar Khicha was appointed as IRP. The Resolution Professional issued a newspaper publication on 24.04.2019. The Resolution Professional met with the suspended directors of the Corporate Debtor and requested books of accounts. The Resolution Professional sent his team on 02.05.2019 to take custody of assets. The Resolution Professional received 23 claims from

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the I&B …

**Ratio:** Section 54 of the I&B Code, 2016, allows for the dissolution of a corporate debtor

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**Reasoning:** The Authority considered that there were no physical assets available for sale and that

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**Interpretation:** Section 54 provides a mechanism for dissolving a corporate debtor when the CIRP

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**Application:** Given the absence of physical assets and the CoC's recommendation, the

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Anil Ku…
- **Appellants:** ANIL KUMAR…
- **Respondents:** M/s. S.N.K.M And…

## Timeline

- **2019-04-22 — Application A…**: The application filed under Section 7 of the I&B Code, 2016 was admitted, initiating the…
- **2019-04-24 — Newspaper Pub…**: The Resolution Professional issued a newspaper…

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