# In the matter of Tirupati Ceramics Ltd. CP (IB) No. 50-Chd-Hry-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01652. The case involves an application filed by Sahara Fincon Pvt. Ltd., a financial creditor,…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01652
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tirupati-ceramics-ltd-cp-ib-no-50-chd-hry-2017-95fe5aed

## Summary

### Background

The case involves an application filed by Sahara Fincon Pvt. Ltd., a financial creditor, against Tirupati Ceramics Ltd., the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was initially admitted, and an Interim Resolution Professional (IRP), Mr. Amit Sharma, was appointed. Subsequently, the Committee of Creditors (CoC) decided not to proceed with the existing Resolution Professional and resolved for liquidation of the corporate debtor. The CoC proposed replacing Mr. Amit Sharma with Mr. Punkaj Jain as the Resolution Professional. The Adjudicating Authority is considering the CoC's decision to liquidate the corporate debtor and the proposed change in Resolution Professionals.

## Facts

Sahara Fincon Pvt. Ltd. filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Tirupati Ceramics Ltd., leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). Mr. Amit Sharma was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional. The Committee of Creditors (CoC), in a meeting held on 17.01.2018, decided with 100% votes that the CIRP had failed and resolved for the liquidation of Tirupati Ceramics Ltd. The CoC also resolved to replace Mr. Amit Sharma and appoint Mr. Punkaj Jain as the liquidator. Mr. Amit Sharma submitted a final report intimating the CoC's decision to seek liquidation. The application before the NCLT was to approve the liquidation and the

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## Issues and analysis

### Issue 1: Whether the request for replacement of the resolution professional for acting as liquidator can be …

**Ratio:** Section 34(1) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The court reasoned that the request for replacement of the resolution professional for

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**Interpretation:** Section 34(1) establishes the default rule that the existing resolution

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**Application:** In this case, since no resolution plan was submitted and the Board did not

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Sahara Fincon…
- **Respondents:** Tirupati Ceramics…

## Timeline

- **2017-09-29 — Petition Ad…**: The petition filed by Sahara Fincon Pvt. Ltd.…
- **2017-10-11 — Appointment…**: Mr. Amit Sharma was appointed as the…

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