# In the matter of Best Textiles Ltd. (IB)-17(ND)-2018

> NCLT judgment dated 2019-02-18. Citation: TCN-2019-NCLT-04801. CA 182/2019 was filed under Section 33 of the Code, seeking directions to liquidate the assets…

- **Court:** NCLT
- **Order date:** 18 Feb 2019
- **Citation:** TCN-2019-NCLT-04801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/best-textiles-ltd-ib-17nd-2018-6465fa3c

## Summary

### Background

CA 182/2019 was filed under Section 33 of the Code, seeking directions to liquidate the assets of the Corporate Debtor. The Corporate Insolvency Resolution (CIR) period of 270 days expired on December 29, 2018. The Resolution application was rejected by the Committee of Creditors (COC). The COC comprised only one Financial Creditor, the Oriental Bank of Commerce. A resolution was passed on December 27, 2018, deciding that the Resolution Professional (RP) should file the present application for liquidation.

## Facts

An application, CA 182/2019, was filed under Section 33 of the Code seeking directions to liquidate the assets of the Corporate Debtor. The 270-day CIR period expired on December 29, 2018. The resolution application was rejected by the COC, which consisted of only one Financial Creditor, the Oriental Bank of Commerce. On December 27, 2018, a resolution was passed deciding that the RP should file the present application for liquidation. Mr. Manoj Kumar Anand was named as the Liquidator by the COC and consented to act as such.

## Issues and analysis

### Issue 1: Whether the application for liquidation of the …

**Ratio:** The court has the power to allow an application for liquidation based on the facts and

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**Reasoning:** The court considered the facts and circumstances of the case, including the COC's

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**Interpretation:** Section 33 of the Code allows for the liquidation of a corporate debtor's

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**Application:** The court applied the principle that it can allow liquidation based on the

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## Parties

- **Judges:** Ina Mal…
- **Respondents:** SBS Transpole…; Best Textil…

## Timeline

- **2018-12-29 — CIR Period…**: The 270 days of the Corporate…
- **2018-12-27 — Resolution…**: A resolution was passed deciding that the Resolution Professional (RP) should file an…

## Legal provisions

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

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