Partly allowed

In the matter of Shiv Shankar Solvent Extractions Pvt. Ltd. Ca (Ib) No. 127-CTB-2019 Connected with Cp (Ib) No. 85-CTB-2019

NCLT9 Dec 2019

Case brief

AI extract

What is this about?

The National Company Law Tribunal, Cuttack Bench, disposed of an application under Section 33(1)(a) and (2) of the IBC. Observing no assets and suspended creditors, the tribunal ordered liquidation of M/s Shiv Shankar Solvent Extractions Pvt. Ltd., appointed the Resolution Professional as Liquidator, and lifted the moratorium.

What did the court decide?

Order passed for liquidation of corporate debtor; RP appointed as Liquidator; moratorium under Section 14 ceased; powers of directors vested in Liquidator.

In the matter of Shiv Shankar Solvent Extractions Pvt… — Insolvency and Bankruptcy | NCLT (2019)

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IF-RTIFIED^{TO BE TRUE COPY}

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IN THg, NATIONAL COMTANY LAW TRTBUNAL CI.JTTACK BENCH CUTTACK

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CA {rB} No. l27tt:TB/?Arg Connected with CI) {I B,}- Nq*,"tt51CTBl?{} I I

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CORAM: l. Ms. Sucharitha R. Member {J} 2. Shri Satya Ranjan^prasad, Member {T}

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In the Matt*r,q! INSOI,VENCY AND BANKRUPTCY CODE, 2OI 6.

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In the l!{,qftqr^qfi

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An appli*atiein under Section 33 ( I ) (a) read with Section 3i (2] of the Insolvency and Bankruptcy Code, 20 I G.

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-And-

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In the Matter of:

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Mr. Pankaj Khetan, Slc Shri vedprakash Khetan, residence of H-3g, LcF, Jangpura Extension, Near Eros complex, New Derhi * I l0 014.

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-Versus-

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In the Matter qJ:

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Directors of the M/s Shiv Shankar $olvent Extrsctions Pvt. Ltd. i"e. (i) Mr. Sudhir Singhal, S/o -'Shri Ratanlat $hinghal resident af Bagicha Ward, Dhamtari (M), Dhamrari, Disfi. * Dhamtari, chhauisgarh * 493 7n &. (ii) Mr. Nitin Goyal Slo Shri Omprakash Goyai, resident of 108/I! Nutan Itrimary School para, Industrial ward, Dhamtari (M). Ilhamtari, Distt. Dhamtari, Chhattisgarh^* 493 773.

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Page 1 of 7 sd"

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{lr}unl-gl^appear} fbr rhe^petiti*ner (S):

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Date of pronouncement of order: 09,t, day of December. 20Ig.

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Pef: Ms. Sqslrafit.kr R. Membrr {.1}

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l' T'his application is filed on l4th October, 2019 under Section 33 (2) of Insolvency and Bankruptcy code, z0l6(herein referred as IBC) by Mr. Pankaj Khetan, Resolution Professional (herein refered as Rp) seeking Order of Liquidation of the Corporate Debtor.

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?' The Adjudicating Authority atNCLT, Cuttack Benph vide its order dated 04rh October, 20lg initiated the Corporate Insolvency Resolution Process against the corporate Debtor. Mr. pankaj Khaitan having istration No. IBBI/IPA-002/IP-N00010/201 6/2017/10014 has been

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Page 2 of 7 SJ-

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"Y;"--':*-

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appointed as Interim Resolution professional. The present Rp w.as appointed by this Adjudicating Authority by Order clare<J 04th September, 2019. The IRP made public announcement in Form A as on 06.09.2019 in accordance with section l5 of the Insolvency and Bankruptcy code 2016, in English ne\e'spaper "Times of India,' and vemacular newspaper ,,Raj Express" both dated 06.09.2019 ar Raipur"

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The RP submim that coc was fbnned on ?5.09.2019 and 1,, coc Meeting w'as held on 0l .10.2019. In response to the advertisement, calling frir the submission of the craims, onry one craim from punjab National Bank, the petitioner of the main application was received. The suspen6ed Board of Creditors are not traceable.^"the Corporate Debtor company was closed down nearly ten years ago. T'he RP subrnits that other than ..land & building", there is no assets and only liability is that of punjab National Bank.

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4' In the CsC meeting held on 01.10.2019, it was decided ro liquidate the Corporate Debtor and to continue the RP as Liquidator with I {JA % voting' The RP as a Liquidator will be entitled fbr the liquidation fee or part thereof through the process of assets realization, as provided under Regulation 39 D of IBBI (Insolvency Resolution Process for Corporare persons) Regurarions, 20r6 read with Reguration 4 (j) ,l-E_!,;.,r?t.._,."

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(Liquidation Process) Regulations, 2016. The Rp has consented to continue as L.iquidator on the said terms and conditions.

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In view'ol'the above, this Adjudicating Authority under Section 33

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(l) & (2) of the Insolvency and Bankruptcy cocle, 2arc, the corporate Ilebtor has to be ordered for Liquidarion.

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6' In view of the fbcts and cirsumstances recorded by the Rp in CA (IB) No. 1?7lcr&/2019 in cp (tB) No. 85/crB/?0r9 and in exercise of powers conferred under sub-clauses (i), (ii) and (iii) of clause {a) of subSection (l) of section 33 of the lnsolvency and Bankruptcy code,20l6.

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This Adjudicating Authority proceeds to pass the Liquidation Order as follows: -

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ORNER

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(i) This Adjudicating Authority orders fbr liquidarion of the Corporate Debtor viz" Mls. Shiv Shankar Solvent Extractions pvt. Lrd.

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(ii) ]'his Adjudicating Authority appoints the Resol*tion Profbssionalviz., Mr. Pankaj Khetan as company Liquidator, who \ .^{shallissuea public announcement statingtherein that the Corporate} page4orPage 4 or'

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gr ^ Cr-^I Sdl

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(ii)

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Debtors is in liquidation, in one of the leading English newspaper as well as one in vemacular newspaper having rvide circulation where the registered office of the Corporate f)ebtor is situated as per section 33(1) (b) (ii) of the code read with Reg. t2 (t) of IBBI (Liquidation Process) Regulations, 20 I 6"

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(iii) rhe morarorium declared under section 14 of the IBC code, 2416, shall cease ro ha'e eflbct from the date of the order of liquidation.

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(iv) subject to section 5? of the tBC code, no suit or other legal proceedings shall be instituted bylor against the Cr:rporate Debtor. However, a suit and other legal proceedings may be instituted by the Liquidator", on beharf of the coqporate Debtor. with the prior approval of this Adjudicating Authority.

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(v) This Adjudicaring Authority makes it clear rhat para (iv) hereinabove shall not apply to legal proceedings in relation to such transactions as notified by the Central Govemment in consultation wirh any financial sector regulator.

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(vi) I'his Order shall be deemed to be a norice of discharge ro the officers. employees and workmen of the corporate Debtor, except when the business of the Corporate l)ebtor is continuecl during rhe Iiquidation process by rhe Liquidator.

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(vii) All the powers oi the Board of Directors, Key Managerial Personnel and the^partners of the corporate Debtor, as the case may be, shall to have effect and shall be vested with the company Liquidato r viz., Mr.^pankaj Khetan.

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(viii) The personnel o{' rhe corporate l)ebtor shall extenr all assistance and co-operation to the Liquidator as may be required by him in managing the affairs of the Corporate Debtor.

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{ix) The Cornpany Liquidator shall be entitled ro charge such fbes as stated under para 4 herein above for the conduct of the liquidation proceedings or in such a proportion to the value of the liquidation estate assets as specified under Regulation 4 of Insolvency and Bankruptcy Board of lndia ( I", iq uidation process) Regulation s, 20 I 6.

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Page 6 of 7

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(*) Copy of this Order shall be sent ts the concerned Registrar of companies, Regional Directar of Eastern Region, and Registered office ofthe corporate Debtor, by the compeny Liquidator viz,, Mr. Pankaj Khrtan for infbrmation and compliance"

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(xi) ln terms of the above, cA (rB) No. I ??lcl},t2tllg filed in cp (IB) No. 85lCTBl20l9 by the Resolution Pro{bssional under $ection 33 (l ) (a) read with section 33 {2) of t}re Insolvency and Bankruprcy Code, ?016 for initiation of the Liquidation Proceedings against the Corporate Debtor viz." l\41s. Iihiv Shankar Solvent Extractions pvr. Ltd. stands dirpased off.

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(xii) The Registry is directed ro send a copy of this order to the company Liquidator, Financiar creditor, corporate Debtor, concerned Roc and ro rhe IsBtr, New Delhi by speed post as well a"s by H-mail with immediate efftct {br infbrmation and cornpliance.

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Shri SaS/a RanjarPrasad

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,Ftemb-*r{?1

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t.,,,,.' Signed on this, the ?Vh ,lry of

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Ssntosh P.S,

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CERTIFIED TO BE TRUE COPY

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ff)"'" National ComPanY^{Law Tribuna i} Cuttack^Bench Page 7 of 7