# In the matter of Alka Fabrics Private Limited C.A. 394-(ND)-2019 in Company Petition  No. (IB)- 894-(ND)-2018

> NCLT judgment dated 2020-01-07. Citation: TCN-2020-NCLT-02475. The case involves an application filed by the Resolution Professional (RP) under Section 33(2)…

- **Court:** NCLT
- **Order date:** 7 Jan 2020
- **Citation:** TCN-2020-NCLT-02475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alka-fabrics-private-limited-ca-394-nd-2019-in-company-petition-no-ib-894-nd-201-0eb946fb

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the corporate debtor, M/s Alka Fabrics Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application filed by the Operational Creditor, Mr. Ashvin Kumar Babulal Dave, sole proprietor of M/s. R. Ashwin Kumar & Co., under Section 9 of the Code. The application was admitted by the Tribunal on 30.10.2018, and Mr. Lekhraj Bajaj was appointed as the Interim Resolution Professional (IRP).

## Facts

Mr. Ashvin Kumar Babulal Dave, the Operational Creditor and sole proprietor of M/s. R. Ashwin Kumar & Co., initiated the Corporate Insolvency Resolution Process (CIRP) against M/s Alka Fabrics Private Limited by filing an application under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Tribunal admitted the application on 2018-10-30 and appointed Mr. Lekhraj Bajaj as the Interim Resolution Professional (IRP). The IRP then constituted a Committee of Creditors (CoC), with HDFC Bank Ltd. as the sole financial creditor. The IRP, acting as the Resolution Professional (RP), issued invitations for Expression of Interest in FORM G for the Corporate Debtor, but no Expression of Interest was received. The CoC then decided to publish a revised FORM G with revised

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, M/s Alka Fabrics Private Limited, …

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

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**Reasoning:** The court reasoned that the Committee of Creditors (CoC) had explored all possible

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**Interpretation:** Section 33(2) is interpreted to mean that if all attempts to find a resolution

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**Application:** In this case, the CoC's failure to receive any Expression of Interest despite

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## Parties

- **Judges:** DEEPTI M…; SH. HEMANT K.…
- **Appellants:** LEKHRAJ BAJ…
- **Respondents:** M/s ALKA FABRICS…; Rajeev…

## Timeline

- **2018-10-30 — Application A…**: The Tribunal admitted the application filed by the Operational Creditor and appointed Mr.…
- **2018-11-01 — Public Annou…**: The Interim Resolution Professional…

## 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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