# In the matter of SHAMBHU MAHADEV SUGAR AND ALLIED INDUSTRIES LIMITED

> NCLT judgment dated 2025-01-01. Citation: TCN-2025-NCLT-00695. The case involves an application (IA 5955/2024) filed by a member of the Stakeholders…

- **Court:** NCLT
- **Order date:** 1 Jan 2025
- **Citation:** TCN-2025-NCLT-00695
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shambhu-mahadev-sugar-and-allied-industries-limited-964cd4e5

## Summary

### Background

The case involves an application (IA 5955/2024) filed by a member of the Stakeholders Consultation Committee (SCC) for the replacement of the existing liquidator, Mr. Abhay Narayan Manudhane, with Ms. Prajakta Madhav Shidhore. The existing liquidator expressed an inability to continue due to crossing the age of seventy.

## Facts

The Stakeholders Consultation Committee (SCC) sought to replace the existing liquidator, Mr. Abhay Narayan Manudhane, because he could no longer continue due to age. The SCC resolved to appoint Ms. Prajakta Madhav Shidhore as the new liquidator in their meeting on 2024-08-09, with a 78.16% majority vote. Ms. Shidhore's written consent was provided. The application was filed under Section 7 and Rule 11 of the NCLT, 2016.

## Issues and analysis

### Issue 1: Whether the application for replacement …

**Ratio:** The court has the discretion to allow the replacement of a liquidator based on valid

…

**Reasoning:** The existing liquidator expressed an inability to continue due to age, and the SCC passed

…

**Interpretation:** The court interprets the relevant provisions to allow for the replacement of a

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**Application:** Given the existing liquidator's inability to continue and the SCC's resolution,

…

## Parties

- **Judges:** ANIL RAJ C…; K. R. SAJI…
- **Appellants:** Abhyudaya…
- **Respondents:** Shambhu Mahadev…
- **Advocates:** Sushama D.…

## Timeline

- **2024-08-09 — SCC Meet…**: The SCC resolved to appoint Ms. Prajakta Madhav Shidhore as Liquidator with 78.16% voting…
- **2025-01-01 — Order Da…**: Order sheet of hearing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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