# In the matter of Simtel Trading Corporation Private Limited

> NCLT judgment dated 2023-12-14. Citation: TCN-2023-NCLT-00244. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against…

- **Court:** NCLT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLT-00244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simtel-trading-corporation-private-limited-fe2faa55

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against Simtel Trading Corporation Private Limited. The CIRP was triggered by an application filed under Section 7 of the Insolvency and Bankruptcy Code by a financial creditor, TATA Capital Financial Services Private Limited, effective from 2022-12-01. The applicant, Mr. Vikky Dang, was appointed as the Interim Resolution Professional (IRP) and later continued as the liquidator. The corporate debtor's registered office was not operational, and the suspended management stated that the business had ceased operations since 2018. The Committee of Creditors (CoC) was formed, and the IRP published announcements in newspapers. The CoC members suggested early dissolution due to the absence of

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## Facts

Simtel Trading Corporation Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by TATA Capital Financial Services Private Limited on 2022-12-01. Mr. Vikky Dang was appointed as the IRP and later as the liquidator. The company's registered office was non-operational since 2018, with no substantial business activity. The IRP published announcements in newspapers as per IBBI regulations. Claims from operational creditors were received after the CoC's constitution. The CoC suggested early dissolution due to the lack of assets. A transaction audit was conducted, revealing potential fraudulent transactions, leading to an avoidance application under Section 66 of the IBC. The average liquidation value was determined to be Rs. 1,21,939. The CoC

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be dissolved under Section 54 of the Insolvency and Bankruptcy …

**Ratio:** Section 54(1) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The court noted that the assets of the corporate debtor had been completely liquidated,

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**Interpretation:** Section 54(1) provides a clear directive for the dissolution of a corporate

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**Application:** Given that the assets of Simtel Trading Corporation Private Limited were

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## Parties

- **Judges:** TMT. Justice…; Shri. Shyam Babu…
- **Appellants:** Vikky…
- **Respondents:** Simtel Trading…

## Timeline

- **2018-01-01 — Business Ceased…**: The suspended management stated that the corporate debtor ceased its business operations…
- **2022-12-01 — CIRP Commencem…**: Corporate Insolvency Resolution Process (CIRP) commenced against Simtel Trading…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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