# 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-00643. 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-00643
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-vehicles-general-sales-private-limited-ca-1637-pb-2019-in-company-petit-9f551880

## 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. The Interim Resolution Professional, Sunil Prakash Sharma, was appointed.

## Facts

Volkswagen Finance Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Sterling Vehicles & General Sales Private Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 26.02.2019. Sunil Prakash Sharma was appointed as the Interim Resolution Professional. Form-A was published in the Financial Express and Jansatta on 10.03.2019 and sent to IBBI on 11.03.2019. The Interim Resolution Professional received claims from six financial creditors and three operational creditors. The suspended directors allegedly did not cooperate. The Committee of Creditors (CoC) decided on 21.08.2019, with a 75.47% majority, 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 of the Insolvency and Bankruptcy Code, 2016, allows for the liquidation of a

…

**Reasoning:** The court reasoned that the CoC, with a majority voting share of 75.47%, decided not to

…

**Interpretation:** Section 33 of the IBC provides a framework for liquidation based on the

…

**Application:** The court applied the ratio to the facts of the case, noting that the CoC had

…

## 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 — Admission of Ap…**: The application under Section 7 of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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-9f551880