# In the matter of Ashapura Intimates Fashion Limited IA No. 1113 of 2020 in CP (IB) No. 4488-MB-2018

> NCLT judgment dated 2020-10-05. Citation: TCN-2020-NCLT-00462. The case involves an application by the Resolution Professional, Kashyap Vaidya, under Section…

- **Court:** NCLT
- **Order date:** 5 Oct 2020
- **Citation:** TCN-2020-NCLT-00462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ashapura-intimates-fashion-limited-ia-no-1113-of-2020-in-cp-ib-no-4488-mb-2018-176e3641

## Summary

### Background

The case involves an application by the Resolution Professional, Kashyap Vaidya, under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, seeking orders for the liquidation of Ashapura Intimates Fashion Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following an order dated 28.06.2019, admitting a petition under Section 7 of the Code. The applicant was appointed as the Interim Resolution Professional (IRP), later confirmed as the Resolution Professional (RP). The CIRP period was extended by 90 days, but no resolution plan was received within the stipulated time.

## Facts

The Resolution Professional, Kashyap Vaidya, filed an application under Section 33(1) of the IBC, 2016, seeking liquidation of Ashapura Intimates Fashion Limited. The CIRP was initiated on 28.06.2019. The applicant was appointed as IRP and later confirmed as RP. The CIRP period was extended by 90 days until 24.03.2020. Kanti Karamsey & Co. and S C Mehra & Associates were appointed as Valuers and Transaction Auditors. Two Prospective Resolution Applicants, Dollar Industries Limited and JG Hosiery Private Limited, showed interest but did not submit a Resolution Plan. Nova Corp also submitted an EOI but did not submit a Resolution Plan. The CIRP period of 270 days expired on 24.03.2020. The CoC passed a resolution with a majority of not less than 66% of voting

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33(1) of the IBC should be allowed given that …

**Ratio:** Section 33(1)(a) of the IBC mandates that where the Adjudicating Authority does not

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**Reasoning:** The court reasoned that since no resolution plan was received within the CIRP period, and

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**Interpretation:** Section 33(1)(a) is interpreted strictly to mean that if no resolution plan is

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**Application:** The court applied Section 33(1)(a) to the facts of the case, noting that the

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** Kashyap V…
- **Respondents:** Ashapura Intimates…; IDFC First Bank…

## Timeline

- **2019-06-28 — CIRP Init…**: The Bench admitted the Petition (CP IB No. 4488/MB/2018) under Section 7 of the Code…
- **2019-08-01 — CoC Consti…**: The IRP constituted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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