# 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-02406. 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-02406
- **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-a7be576a

## 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 to invite claims from creditors. The Committee of Creditors (CoC) was formed, and several meetings were held to explore resolution plans. Garg Industries

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## Facts

Atlantic Spinning and Weaving Mills Limited underwent Corporate Insolvency Resolution Process (CIRP) following the admission of a petition 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, resulting in the receipt of claims amounting to Rs. 349,07,64,763.43 from Financial Creditors. A Committee of Creditors (CoC) was formed, comprising six members. Several CoC meetings were held to explore resolution plans. Garg Industries submitted a resolution plan, but the CoC found it inadequate, citing a low offer compared to the admitted claims

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Atlantic …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, mandates that where the

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**Reasoning:** The Tribunal reasoned that the CIRP period had expired, and no viable resolution plan was

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**Interpretation:** Section 33(1)(a) is interpreted strictly to mean that if a resolution plan is

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**Application:** In this case, the CIRP period expired without a viable resolution plan being

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** Shaik G…
- **Respondents:** Atlantic Spinning…

## Timeline

- **2018-01-01 — CP (IB) No. 497/7/HDB/20…**: Petition bearing CP (IB) No. 497/7/HDB/2018 filed by Financial Creditor U/s 7 of…
- **2018-10-12 — Public Annou…**: IRP made Public Announcement as required under Section 15 of IBC r/w Reg.6 of IBBI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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