# In the matter of Sagar Autotech Pvt. Ltd. IA-105(MP)2023 in (MP) CP(IB) 42 of 2020

> NCLT judgment dated 2023-04-21. Citation: TCN-2023-NCLT-03678. The case pertains to IA/105(MP)2023 filed in CP(IB) 42 of 2020, concerning Sagar Autotech Pvt…

- **Court:** NCLT
- **Order date:** 21 Apr 2023
- **Citation:** TCN-2023-NCLT-03678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sagar-autotech-pvt-ltd-ia-105mp2023-in-mp-cpib-42-of-2020-69a1cf38

## Summary

### Background

The case pertains to IA/105(MP)2023 filed in CP(IB) 42 of 2020, concerning Sagar Autotech Pvt Ltd under Section 10 of the Insolvency and Bankruptcy Code (IBC). The Corporate Insolvency Resolution Process (CIRP) commenced on 2022-06-23. The application was filed seeking liquidation of the corporate debtor due to the absence of a resolution plan within the stipulated time frame. The Committee of Creditors (CoC) did not approve any resolution plan or extension of the CIRP period with the required majority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Sagar Autotech Pvt Ltd commenced on 2022-06-23. Despite the passage of more than 180 days, no resolution plan was filed as per the provisions of Section 30(6) of the IBC. The Resolution Professional (RP) did not file any application under Section 12(2) for an extension of the CIRP period. The Committee of Creditors (CoC) did not have the requisite 66% voting share to support either a resolution plan or an application for extending the CIRP period. The voting status on a resolution indicated that 55.45% voted in favor, and 45.55% voted against. The application under Section 10 of IBC was filed for liquidation. The RP consented to act as the liquidator. The court observed that the application was not maintainable

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Sagar Autotech Pvt Ltd, should be liquidated under Section 33(1)(a) …

**Ratio:** Section 33(1)(a) of the IBC mandates liquidation if no resolution plan is approved or the

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**Reasoning:** The court reasoned that since no resolution plan was received within the stipulated time

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if the CIRP does not result in a

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Sh. Ashok Kumar…; KAUSHALENDRA…
- **Respondents:** Sagar Autotech…

## Timeline

- **2022-06-23 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2023-03-20 — CoC Meet…**: 7th meeting of the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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