# In the matter of S. K. Masala and Foods Ltd. IA 727 of 2021 In CP(IB) 468 of 2018

> NCLT judgment dated 2022-12-15. Citation: TCN-2022-NCLT-00151. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC).…

- **Court:** NCLT
- **Order date:** 15 Dec 2022
- **Citation:** TCN-2022-NCLT-00151
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-k-masala-and-foods-ltd-ia-727-of-2021-in-cpib-468-of-2018-c12bb105

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The liquidator seeks adjournment, stating that the arguing counsel is unavailable. The application is from 2021 and is not being attended to by the liquidator. An order dated 14.07.2022 records that the liquidator had undertaken to file a list of dates and events, which has not been filed. The Income Tax counsel was directed to comply with an order dated 09.06.2022. The Income Tax counsel states that they have complied with the order and served a copy to the liquidator. The matter was listed on 30.09.2022, but no one appeared for the applicant. On 17.11.2022, the matter was adjourned due to a lack of time, and the applicant's appearance was not recorded.

## Facts

C Girdharlal Gheewala filed an application under Section 9 of the IBC against SK Masala & Food Ltd. The liquidator sought an adjournment because the arguing counsel was unavailable. The application, originating in 2021, was not being actively pursued by the liquidator. A prior order on 14.07.2022 required the liquidator to file a list of dates and events, which was not done. The Income Tax counsel was directed to comply with an order dated 09.06.2022, and they claim to have complied and served a copy to the liquidator. On 30.09.2022, no one appeared for the applicant. On 17.11.2022, the matter was adjourned due to a lack of time, and the applicant's appearance was not recorded. The court expresses concern over the liquidator's negligence in pursuing the application

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## Issues and analysis

### Issue 1: Whether the liquidator is negligent in pursuing the application for closure of the liquidation …

**Ratio:** A liquidator has a duty to diligently pursue the liquidation process and comply with

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**Reasoning:** The court observes that the application for closure of the liquidation process has been

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**Interpretation:** The court interprets the liquidator's actions as a failure to fulfill their

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**Application:** The court applies the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** C. Girdharlal…
- **Respondents:** S.K. Masala &…

## Timeline

- **2022-07-14 — Previous…**: Order dated 14.07.2022 records that the Liquidator had undertaken to file list of dates…
- **2022-06-09 — Direction to I…**: Learned Counsel for Income Tax was also directed to comply with the order dated…

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