# In the matter of Sare Realty Projects Private Limited

> NCLT judgment dated 2024-09-09. Citation: TCN-2024-NCLT-00643. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLT-00643
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sare-realty-projects-private-limited-1350287f

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, concerning M/s. SARE Realty Projects Private Limited. The CoC had previously decided on liquidation after five meetings, with a voting share of 88.48%, meeting the criteria under Section 33(2) of the Code. An earlier order by the NCLAT addressed the Adjudicating Authority's approach to liquidation decisions, emphasizing that the CoC has the power to liquidate the Corporate Debtor before confirmation of a resolution plan, provided it meets the voting share requirements. The NCLAT's decision was based on the Sunil S. Kakkad case, which was affirmed by the Supreme Court.

## Facts

M/s. SARE Realty Projects Private Limited is the Corporate Debtor in this case. The Committee of Creditors (CoC) held five meetings and decided to liquidate the Corporate Debtor with a voting share of 88.48%. An earlier order by the NCLAT addressed the Adjudicating Authority's approach to liquidation decisions, emphasizing that the CoC has the power to liquidate the Corporate Debtor before confirmation of a resolution plan, provided it meets the voting share requirements. The NCLAT's decision was based on the Sunil S. Kakkad case, which was affirmed by the Supreme Court. The application was filed under Section 9 of the IBC, 2016. The issuance of notice under Section 65 was stayed by the Court. The Adjudicating Authority did not find any reason for forming an opinion

…

## Issues and analysis

### Issue 1: Whether the CoC has the power to liquidate the Corporate Debtor before confirmation of a resolution …

**Ratio:** The CoC has the power to liquidate the Corporate Debtor before confirmation of a

…

**Reasoning:** The NCLAT's order clarified that the Adjudicating Authority erred in its approach, as the

…

**Interpretation:** Section 33(2) of the IBC allows the CoC to decide on liquidation even before a

…

**Application:** In this case, the CoC decided to liquidate the Corporate Debtor with a voting

…

## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Dharm Vir…
- **Respondents:** M/s. SARE Realty…

## Timeline

- **2024-01-17 — NCLAT Or…**: Order passed in Company Appeal (AT) (Ins.) No. 447 of 2023 and IA-1475 of 2023 & IA-1476…
- **2021-01-07 — Supreme Court…**: Appeal filed by Sunil S. Kakkad was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

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-division-bench-court-i-chenn/sare-realty-projects-private-limited-1350287f