# In the matter of Subhlabh Steels Private Limited

> NCLT judgment dated 2024-05-01. Citation: TCN-2024-NCLT-01498. The case involves an application under Section 54 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 1 May 2024
- **Citation:** TCN-2024-NCLT-01498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/subhlabh-steels-private-limited-866e7633

## Summary

### Background

The case involves an application under Section 54 of the Insolvency and Bankruptcy Code, 2016, read with Regulation 14 of the IBBI (Liquidation Process) Regulations, 2016, for the dissolution of Subhlabh Steels Private Limited, the Corporate Debtor. The application was filed by Uttam Tekriwal, the liquidator of the Corporate Debtor. The Interlocutory Application (IB) No. 1466/KB/2023 is connected with Company Petition (IB) No. 2036/KB/2019.

## Facts

Chaitanya Alloys Private Limited is the Operational Creditor. Subhlabh Steels Private Limited is the Corporate Debtor undergoing liquidation. Uttam Tekriwal is the liquidator of Subhlabh Steels Private Limited and filed an application for the dissolution of the company under Section 54 of the Insolvency and Bankruptcy Code, 2016. The liquidation process involved an e-auction where Pushpraj Exim Private Limited was declared the successful bidder. The full consideration of Rs. 5,00,000 was realized in three tranches: Rs. 25,000 as EMD on 02.03.2023, Rs. 1,00,000 as 25% of sale consideration less EMD on 01.04.2023, and Rs. 3,75,000 as 100% of sale consideration on 08.05.2023. The liquidation bank account with ICICI Bank was closed with NIL balance, and the certificate of

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Subhlabh Steels Private Limited, should be dissolved under Section …

**Ratio:** Section 54(1) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The court was satisfied that the liquidation process had been completed, the assets had

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**Interpretation:** Section 54(1) provides the legal basis for dissolving a corporate entity once

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**Application:** The court applied Section 54(1) to the facts of the case, noting that the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Subhlabh Steels…
- **Advocates:** Mr Udit A…

## Timeline

- **2019-01-01 — Company Petition (IB)…**: Company Petition (IB)…
- **2022-09-06 — Date of Liquidation…**: Liquidation order was issued for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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