# In the matter of SRS Modern Sales Ltd. CP(IB) No. 10-Chd-Hry-2017

> NCLT judgment dated 2018-02-26. Citation: TCN-2018-NCLT-01774. The case pertains to the insolvency resolution process of SRS Modern Sales Ltd. initiated under…

- **Court:** NCLT
- **Order date:** 26 Feb 2018
- **Citation:** TCN-2018-NCLT-01774
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/srs-modern-sales-ltd-cpib-no-10-chd-hry-2017-3c69a380

## Summary

### Background

The case pertains to the insolvency resolution process of SRS Modern Sales Ltd. initiated under Section 10 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 17.04.2017, and Mr. Sameer Rastogi was appointed as the Interim Resolution Professional, later confirmed as the Resolution Professional by the Committee of Creditors (CoC). The insolvency resolution process period of 180 days expired on 17.10.2017. The CoC, comprising 4 Banks, decided in its 6th meeting on 16.10.2017 to refer the company for liquidation before the NCLT, Chandigarh. A resolution plan submitted by the promoters/directors on 12.10.2017 was found unacceptable by the CoC.

## Facts

SRS Modern Sales Ltd. underwent corporate insolvency resolution process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP commenced on 17.04.2017. Mr. Sameer Rastogi was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The 180-day period for the CIRP expired on 17.10.2017. The Committee of Creditors (CoC), consisting of 4 banks, decided on 16.10.2017 to liquidate the company. A resolution plan submitted by the promoters/directors on 12.10.2017 was rejected by the CoC. The Union Bank of India, through its authorized officer Mr. Sanjay Narayan, filed an affidavit stating that the bank is taking steps under the SARFAESI Act against the corporate and personal guarantors. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for liquidation of the corporate debtor …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, mandates that if the

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**Reasoning:** The court reasoned that the insolvency resolution process period had expired, and the

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**Interpretation:** Section 33(1) is interpreted to mean that liquidation is the default outcome

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**Application:** Since the resolution plan was rejected and the CIRP period had expired, the

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Respondents:** SRS Modern Sales…

## Timeline

- **2017-04-17 — Admission of…**: The petition filed by SRS Modern Sales Limited under Section 10 of the Insolvency and…
- **2017-04-17 — Appointment…**: Mr. Sameer Rastogi was appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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