# In the matter of Atlanti Spinning and Weaving Mills Pvt. Ltd. I.A. 284-2019 in C.P. (IB) No. 497-7-HDB-2018

> NCLT judgment dated 2020-01-09. Citation: TCN-2020-NCLT-02411. The case involves an Interlocutory Application (IA No. 284/2019) filed by the Resolution…

- **Court:** NCLT
- **Order date:** 9 Jan 2020
- **Citation:** TCN-2020-NCLT-02411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/atlanti-spinning-and-weaving-mills-pvt-ltd-ia-284-2019-in-cp-ib-no-497-7-hdb-201-957533ba

## Summary

### Background

The case involves an Interlocutory Application (IA No. 284/2019) filed by the Resolution Professional under Section 33(1)(a) and 34(1) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor, Atlantic Spinning and Weaving Mills Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition filed by a Financial Creditor under Section 7 of the IBC. The Resolution Professional was appointed as the Interim Resolution Professional (IRP) and subsequently confirmed as the Resolution Professional (RP). Public announcements were made as required under Section 15 of the IBC. The Committee of Creditors (CoC) was formed, and several meetings were held to consider resolution plans. Garg

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Atlantic Spinning and Weaving Mills Limited based on a petition filed by a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Mr. Shaik Gouse was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite claims from creditors. The Committee of Creditors (CoC) was formed, comprising six members. Several CoC meetings were held to evaluate potential resolution plans. Garg Industries submitted a resolution plan, but the CoC found it inadequate, citing concerns about the amount offered to creditors and the financial credibility of the Resolution Applicant. The CoC also

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Atlantic Spinning and Weaving …

**Ratio:** Section 33(1) of the IBC mandates the Adjudicating Authority to pass an order requiring

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

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**Interpretation:** Section 33(1) provides a clear directive for liquidation when the CIRP fails to

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**Application:** In this case, the Resolution Professional did not receive a resolution plan

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Shaik Gouse,…
- **Respondents:** Atlantic Spinning…

## Timeline

- **2018-10-12 — Public Annou…**: IRP made Public Announcement as required under Section 15 of IBC r/w Reg.6 of IBBI…
- **2018-10-23 — Last date for…**: The last date for submission of claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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