# In the matter of GB Raja Top Weaving Private Limited MA-824-2019 in CP-1215-IB-2018

> NCLT judgment dated 2019-08-29. Citation: TCN-2019-NCLT-01691. The case pertains to MA/824/2019 in CP/1215/IB/2018, filed under Section 33(2) of the…

- **Court:** NCLT
- **Order date:** 29 Aug 2019
- **Citation:** TCN-2019-NCLT-01691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gb-raja-top-weaving-private-limited-ma-824-2019-in-cp-1215-ib-2018-093ae07f

## Summary

### Background

The case pertains to MA/824/2019 in CP/1215/IB/2018, filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. GB Raja Top Weaving Private Limited, the Corporate Debtor, following an application under Section 9 of the I&B Code, 2016, by the Operational Creditor, M/s. GHCL Limited. The application was admitted on 2019-03-15. An Interim Resolution Professional (IRP), Ramasubramaniam, was appointed, who was later replaced by Mr. Mahalingam Suresh Kumar as the Resolution Professional. Despite inviting resolution plans, none were received. The Committee of Creditors (CoC), consisting of the sole financial creditor, State Bank of India, resolved to liquidate the Corporate Debtor.

## Facts

M/s. GB Raja Top Weaving Private Limited is the Corporate Debtor. CP/1215/IB/2018 was initiated under Section 9 of the I&B Code, 2016, by M/s. GHCL Limited, the Operational Creditor. The CIRP was admitted on 2019-03-15. Ramasubramaniam was initially appointed as the Interim Resolution Professional (IRP). Mr. Mahalingam Suresh Kumar replaced Ramasubramaniam as the Resolution Professional. The first CoC meeting was held on 2019-04-12, and the second on 2019-05-31. The Resolution Professional invited Expressions of Interest (EOI) with a deadline of 2019-06-15, but no resolution plans were received. The entity had been non-operational for more than two years. The third CoC meeting was held on 2019-07-29, where the sole financial creditor, State Bank of India,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, M/s. GB …

**Ratio:** Section 33(2) of the I&B Code, 2016, empowers the Adjudicating Authority to order

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**Reasoning:** The Adjudicating Authority reasoned that since no resolution plan was received within the

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**Interpretation:** Section 33(2) is interpreted to mean that liquidation is the default outcome

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**Application:** The ratio and reasoning were applied to the facts of the case, where no

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Anil Ku…
- **Appellants:** Mahalingam Suresh…
- **Respondents:** GB Raja Top…

## Timeline

- **2018-01-01 — CP/1215/IB/20…**: CP/1215/IB/2018 was filed…
- **2019-03-15 — CIRP Admi…**: The application under Section 9 of the I&B…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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