# In the matter of Free Culture Apparels Pvt. Ltd. (IB)-128(PB)-2018 with CA No. 439 & 471-PB-2018

> NCLT judgment dated 2018-07-16. Citation: TCN-2018-NCLT-01133. The case involves an application for the liquidation of Inergizer IT Service Pvt. Ltd. under…

- **Court:** NCLT
- **Order date:** 16 Jul 2018
- **Citation:** TCN-2018-NCLT-01133
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/free-culture-apparels-pvt-ltd-ib-128pb-2018-with-ca-no-439-471-pb-2018-a45c372c

## Summary

### Background

The case involves an application for the liquidation of Inergizer IT Service Pvt. Ltd. under Section 33(1) of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional sought approval for liquidation as no resolution plan was received during the Corporate Insolvency Resolution (CIR) process. The Resolution Professional also requested the release of outstanding arrears since the commencement of the CIR process. The Committee of Creditors (CoC) had recommended liquidation due to the absence of a resolution plan and the limited assets of the Corporate Debtor.

## Facts

Inergizer IT Service Pvt. Ltd. underwent Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. No resolution plan was received during the CIRP. The Committee of Creditors (CoC) recommended liquidation of the corporate debtor. The CoC's decision was influenced by the fact that no resolution applicant showed interest and the corporate debtor had limited assets: four damaged laptops, a bank balance of Rs. 1.05 Lakh, and mutual fund units worth around Rs. 80,000. The Resolution Professional identified potentially tainted transactions, including a write-off of debts amounting to Rs. 5.29 crores and software worth Rs. 1.05 crores. The CoC approved the resolution for liquidation with a 100% vote in its 7th meeting dated April 30, 2018.

…

## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, Inergizer IT Service Pvt. Ltd., should be approved …

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

…

**Reasoning:** The Committee of Creditors (CoC) approved the resolution for liquidation with a 100%

…

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

…

**Application:** In this case, the CoC's unanimous approval of liquidation, the lack of a

…

## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Respondents:** Inergizer IT…; Free Culture…

## Timeline

- **2017-09-01 — CIRP Admi…**: The application for Corporate Insolvency…
- **2018-04-30 — CoC Meet…**: The Committee of Creditors (CoC) voted to approve the liquidation of the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

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/free-culture-apparels-pvt-ltd-ib-128pb-2018-with-ca-no-439-471-pb-2018-a45c372c