# In the matter of Shree Sankar Saw Mill Private Limited IA(IBC) No. 510-KB-2022 in CP (IB) No. 101-KB-2021

> NCLT judgment dated 2023-07-14. Citation: TCN-2023-NCLT-02506. The application was filed by the Resolution Professional of Shree Sankar Saw Mill Private…

- **Court:** NCLT
- **Order date:** 14 Jul 2023
- **Citation:** TCN-2023-NCLT-02506
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-sankar-saw-mill-private-limited-iaibc-no-510-kb-2022-in-cp-ib-no-101-kb-20-9793cc46

## Summary

### Background

The application was filed by the Resolution Professional of Shree Sankar Saw Mill Private Limited, the Corporate Applicant, seeking liquidation of the Corporate Applicant. This followed the initiation of CIRP and the Committee of Creditors' decision to liquidate the corporate debtor due to no viable resolution plan and the company being closed for over seven years.

## Facts

The Adjudicating Authority initiated the Corporate Insolvency Resolution Process ( CIRP ) against Shree Sankar Saw Mill Private Limited on January 27, 2022, in CP(IB) No. 101/KB/2021. Mr. Neeraj Kumar Sureka was appointed as the Interim Resolution Professional (IRP). This order was duly communicated to the IRP, marking the formal commencement of the insolvency proceedings. Following the initiation of CIRP, a public announcement in Form A was published on January 29, 2022, in 'Financial Express' (English) and 'Aajkal' (Bengali) newspapers, as required by regulation 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. Subsequently, the IRP received a claim from State Bank of India, a secured financial creditor, and constituted the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated under Section 33(2) of the Insolvency and …

**Ratio:** An Adjudicating Authority is mandated to pass a liquidation order under **Section

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**Reasoning:** The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor with 100%

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**Interpretation:** The court interpreted **Section 33(1)(a)** and **Section 33(2)** as leaving no

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**Application:** Given that the CoC approved liquidation with 100% votes and no resolution plan

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## Parties

- **Judges:** Rohit K…; Balraj…; +3 more
- **Appellants:** Neeraj Kumar…; Resolution…
- **Respondents:** Shree Sankar Saw…
- **Advocates:** Saurav…; For…; +1 more

## Timeline

- **January 27, 2022 — CIRP Init…**: Adjudicating Authority ordered the initiation of CIRP against Shree Sankar Saw Mill…
- **January 29, 2022 — Public Annou…**: Public Announcement in Form A was published in 'Financial Express' and 'Aajkal'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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