# In the matter of Afloat Textiles (India) Limited MA 1915-2019
In CP (IB) 1506-MB-C-II-2017

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00085. The case involves an application for the liquidation of Affloat Textiles (India) Limited. The…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00085
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/afloat-textiles-india-limited-ma-1915-2019-in-cp-ib-1506-mb-c-ii-2017-5696275c

## Summary

### Background

The case involves an application for the liquidation of Affloat Textiles (India) Limited. The Corporate Debtor was placed under CIRP on 23.09.2019, following an application under Section 7 of the IBC by Kapokh Fibres & Industries Limited, the Financial Creditor. Preeti Vimal Agrawal was appointed as IRP on the same day and later as the Resolution Professional. During the CIRP period, no resolution plan was received, leading to the decision to liquidate the Corporate Debtor.

## Facts

Kapokh Fibres & Industries Limited initiated CIRP against Affloat Textiles (India) Limited under Section 7 of the IBC. The CIRP commenced on 2019-09-23. Preeti Vimal Agrawal was appointed as the IRP and later as the Resolution Professional. A CoC meeting was held on 2018-03-13. Despite the preparation of an Information Memorandum, no resolution plan was received during the CIRP. A meeting held on 2018-06-27 confirmed the absence of a resolution plan. The liquidation value of the assets as of 2018-09-31 was Rs. 2,91,032. The Resolution Professional consented to act as the liquidator. The absence of a resolution plan, coupled with the financial situation of the Corporate Debtor, led to the decision to liquidate the company.

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Affloat Textiles (India) Limited, should be liquidated due to the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the fact that no resolution plan was received

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**Interpretation:** Section 33(2) provides a mechanism for the liquidation of a corporate debtor

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**Application:** In this case, since no resolution plan was received, and the committee of

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** Preeti Vimal…
- **Respondents:** Affloat Textiles…

## Timeline

- **2018-03-13 — First CoC M…**: The first meeting of the Committee of Creditors was held, and the IRP was appointed as…
- **2018-06-27 — Meeting Regarding…**: A meeting was held where it was noted that no Resolution Plan was received by the…

## 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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