# 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-00656. 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-00656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sterling-vehicles-general-sales-private-limited-ca-1637-pb-2019-in-company-petit-bd3eda3b

## 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, Mr. Sunil Prakash Sharma, was appointed.

## 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. 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) decided on 21.08.2019, with a 75.47% majority, not to extend the CIRP and resolved for liquidation. The last date for the CIRP was

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## 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 the Adjudicating Authority

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**Reasoning:** The Committee of Creditors (CoC), with a majority voting share of 75.47%, resolved for

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**Interpretation:** Section 33 provides a mechanism for the CoC to decide on liquidation, and the

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**Application:** In this case, the CoC's decision to liquidate the corporate debtor, coupled

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Sunil Prakash…
- **Respondents:** Sterling Vehicles…
- **Advocates:** Neeraj Kuma…; Sumesh…; +5 more

## Timeline

- **2018-01-01 — Company Petiti…**: Company Petition No. (IB) –…
- **2019-02-26 — Application A…**: The application under Section 7 of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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