# In the matter of Floram Shoes (India) Private Limited IA-171-IB-2020 in IBA-579-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03222. The case pertains to IA/171/IB/2020 filed in IBA/579/2019 under Section 33(1)(a) of the…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/floram-shoes-india-private-limited-ia-171-ib-2020-in-iba-579-2019-f3aea0d4

## Summary

### Background

The case pertains to IA/171/IB/2020 filed in IBA/579/2019 under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, concerning M/s. Floram Shoes (India) Private Limited. The CIRP was initiated on 2019-07-31. The applicant was appointed as IRP and issued a public announcement calling for claims from creditors. The first meeting of the Committee of Creditors (CoC) was held on 2019-09-03. The applicant was appointed as Resolution Professional on 2019-11-05 and appointed two IBBI registered valuers on 2019-09-27 for valuation of the corporate debtor's assets.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Floram Shoes (India) Private Limited was initiated on 2019-07-31. An Interim Resolution Professional (IRP) was appointed, who then issued a public announcement to invite claims from creditors. The first meeting of the Committee of Creditors (CoC) took place on 2019-09-03. Subsequently, a Resolution Professional was appointed on 2019-11-05, who then appointed two IBBI registered valuers to assess the value of the corporate debtor's assets. The CoC approved the Information Memorandum and the Expression of Interest, which was published on 2019-11-30. A resolution plan was proposed by Mr. Sankarathanu Pillai Meghanathan, but it was not pursued. The CoC, in its 5th meeting held on 2020-01-23, resolved with 100% voting

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1)(a) of the …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation

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**Reasoning:** The CoC, in its 5th meeting, resolved with 100% voting rights to liquidate the Corporate

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**Interpretation:** Section 33(1)(a) provides the legal basis for the CoC's decision to liquidate

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**Application:** Given the CoC's decision and the lack of objections, the Adjudicating Authority

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Mr.Amier Hamsa…
- **Respondents:** M/s. Floram Shoes…

## Timeline

- **2019-07-31 — CIRP Init…**: The Corporate Insolvency Resolution Process…
- **2019-08-07 — Public Annou…**: The IRP issued a public announcement…

## 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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