# In the matter of Shresht Industries Private Limited

> NCLT judgment dated 2024-06-06. Citation: TCN-2024-NCLT-01217. The case involves an application filed by the Liquidator of Shresht Industries Private Limited…

- **Court:** NCLT
- **Order date:** 6 Jun 2024
- **Citation:** TCN-2024-NCLT-01217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shresht-industries-private-limited-e95ed7cc

## Summary

### Background

The case involves an application filed by the Liquidator of Shresht Industries Private Limited under Section 54(1) of the Insolvency & Bankruptcy Code, 2016, seeking early dissolution of the Corporate Debtor (CD). The CD was admitted into the Corporate Insolvency Resolution Process (CIRP), but faced a lack of cooperation from the Suspended Directors. The Committee of Creditors (CoC) resolved to initiate liquidation against the CD. The Liquidator was appointed, and a public announcement was made to invite claims from creditors. The Stakeholders Consultation Committee (SCC) approved for early dissolution of the CD due to the value of assets being less than the liquidation expenses and the remote certainty of vehicles traceable.

## Facts

Shresht Industries Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) due to a lack of cooperation from its Suspended Directors. The Committee of Creditors (CoC) resolved to initiate liquidation. The Applicant was appointed as the Liquidator. The Liquidator issued a public announcement inviting claims from creditors. The tangible assets were valued at Rs 76.10 lakhs as of March 31, 2019, including vehicles valued at Rs 74.12 lakhs. The Stakeholders Consultation Committee (SCC) approved early dissolution because the asset value was less than liquidation expenses and the vehicles were difficult to trace. The Liquidator filed reports under Regulation 45(3) of the IBBI (Liquidation Process) Regulations, 2016. The Suspended Directors did not

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## Issues and analysis

### Issue 1: Whether the assets of the corporate debtor have been completely liquidated as required under …

**Ratio:** Section 54 of the IBC stipulates that where the assets of the corporate debtor have been

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**Reasoning:** The Tribunal noted that the assets of the corporate debtor had been completely

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**Interpretation:** Section 54(1) of the IBC is interpreted to mean that once all assets of the

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**Application:** In this case, the Tribunal found that the assets of Shresht Industries Private

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Narender Ga…
- **Respondents:** Shresht Industries…; Canara…

## Timeline

- **2023-09-22 — CoC Meet…**: The Committee of Creditors (CoC) resolved in its meeting to initiate the liquidation…
- **2023-12-08 — Liquidation…**: The Tribunal admitted the Corporate Debtor into liquidation and appointed the Applicant…

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