# In the matter of Falcon Tyres Limited I. A. No. 47-2019 in C.P. No. (IB) 14-BB-2017

> NCLT judgment dated 2019-12-30. Citation: TCN-2019-NCLT-00010. The case involves M/s. Falcon Tyres Limited, the Corporate Debtor, which was incorporated in…

- **Court:** NCLT
- **Order date:** 30 Dec 2019
- **Citation:** TCN-2019-NCLT-00010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/falcon-tyres-limited-i-a-no-47-2019-in-cp-no-ib-14-bb-2017-e24cc97d

## Summary

### Background

The case involves M/s. Falcon Tyres Limited, the Corporate Debtor, which was incorporated in 1973 and engaged in the manufacture of tyres and tubes. Due to labor unrest, its manufacturing activities ceased in 2015. Edelweiss Asset Reconstruction Company Limited (EARCL), a Financial Creditor, filed C.P. (IB) No.14/BB/2017 under Section 7 of the IBC, 2016, to initiate CIRP. The Company Petition was admitted on May 1st, 2018, initiating CIRP and appointing an IRP. Subsequently, Mr. Savan Godiawala was appointed as the Resolution Professional. Despite multiple attempts and extensions, no viable resolution plan was approved by the Committee of Creditors (CoC).

## Facts

M/s. Falcon Tyres Limited, the Corporate Debtor, was incorporated on 29th November 1973. The company's manufacturing activities ceased in 2015 due to labor unrest. M/s. Edelweiss Asset Reconstruction Company Limited (EARCL) filed C.P. (IB) No.14/BB/2017 under Section 7 of the IBC, 2016, to initiate CIRP. The Company Petition was admitted on May 1st, 2018. Mr. Vijay Kumar V. Iyer was initially appointed as the IRP, later replaced by Mr. Savan Godiawala as the Resolution Professional. The CoC was constituted, and multiple meetings were held. A resolution plan was submitted by Maple Tree Leather Goods Private Limited, but it was rejected by the CoC. The CoC rejected the resolution plan because it did not appear to be credible, capable, and genuine, and the Resolution

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the liquidation of the Corporate Debtor, given …

**Ratio:** Section 33 of the IBC mandates the Adjudicating Authority to pass an order for

…

**Reasoning:** The CoC, consisting of financial creditors, has the commercial wisdom to decide on the

…

**Interpretation:** The IBC emphasizes the commercial wisdom of the CoC in the resolution process.

…

**Application:** In this case, the CoC rejected the resolution plan with a 99.3% majority, and

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Savan God…
- **Respondents:** Falcon Tyres…

## Timeline

- **1973-11-29 — Incorporation of…**: M/s. Falcon Tyres Limited was…
- **2015-04-01 — Cessation of Manufacturi…**: Manufacturing activities of the Corporate Debtor…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/falcon-tyres-limited-i-a-no-47-2019-in-cp-no-ib-14-bb-2017-e24cc97d