# In the matter of Sterling Vehicles & General Sales Private Limited C.A. 1637 (PB) -2019 in Company Petition No. (IB) - 546 (PB) -2018.

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00652. The case involves an application filed by the Resolution Professional under Section 33(2) of…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-vehicles-general-sales-private-limited-ca-1637-pb-2019-in-company-petit-59cb9399

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, Sterling Vehicles & General Sales Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 7 of the Code by Volkswagen Finance Private Limited. The application was admitted on 26.02.2019, and Mr. Sunil Prakash Sharma was appointed as the Interim Resolution Professional.

## Facts

Volkswagen Finance Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Sterling Vehicles & General Sales Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The application was admitted on 26.02.2019, and Sunil Prakash Sharma was appointed as the Interim Resolution Professional (IRP). Form-A was published in the Financial Express and Jansatta on 10.03.2019 and sent to IBBI on 11.03.2019. The IRP received claims from six financial creditors and three operational creditors. The suspended directors of the corporate debtor allegedly did not cooperate. The Committee of Creditors (CoC), in its meeting on 21.08.2019, with a 75.47% majority, decided not to extend the CIRP period and resolved for liquidation. The last

…

## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, Sterling Vehicles & General …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

…

**Reasoning:** The Committee of Creditors, with a majority voting share of 75.47%, decided not to seek

…

**Interpretation:** Section 33(2) mandates that if the CoC decides to liquidate the corporate

…

**Application:** Given the CoC's decision to liquidate, the absence of a resolution plan, and

…

## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Sunil Prakash…
- **Respondents:** Sterling Vehicles…

## Timeline

- **2018-01-01 — Company Petiti…**: Company Petition No. (IB) –…
- **2019-02-26 — CIRP Init…**: Application under Section 7 of the Code by Volkswagen Finance Private Limited was…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sterling-vehicles-general-sales-private-limited-ca-1637-pb-2019-in-company-petit-59cb9399