# 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-01696. The case pertains to MA/824/2019 in CP/1215/IB/2018 filed under Section 33(2) of the Insolvency…

- **Court:** NCLT
- **Order date:** 29 Aug 2019
- **Citation:** TCN-2019-NCLT-01696
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gb-raja-top-weaving-private-limited-ma-824-2019-in-cp-1215-ib-2018-0f3ed8a4

## 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, concerning M/s. GB Raja Top Weaving Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an application under Section 9 of the I&B Code, 2016, by M/s. GHCL Limited. Mr. Ramasubramaniam was appointed as Interim Resolution Professional (IRP). Subsequently, Mr. Mahalingam Suresh Kumar was appointed as Resolution Professional. Despite inviting resolution plans, no formal EOI/Resolution Plan was 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 faced Corporate Insolvency Resolution Process (CIRP) initiated by M/s. GHCL Limited under Section 9 of the I&B Code, 2016. The CIRP commenced on 2019-03-15. Mr. Ramasubramaniam was initially appointed as the Interim Resolution Professional (IRP), followed by Mr. Mahalingam Suresh Kumar as the Resolution Professional. The Resolution Professional invited resolution plans, but no formal Expression of Interest (EOI) or resolution plan was received. The Committee of Creditors (CoC), consisting solely of State Bank of India, resolved on 2019-07-29 to liquidate the Corporate Debtor due to the lack of a resolution plan and the entity being non-operational for over two years. The Resolution Professional then filed MA/824/2019 seeking

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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, stipulates that if no resolution plan is

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**Reasoning:** The Adjudicating Authority noted that no resolution plan was received within the CIRP

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**Interpretation:** Section 33(2) is interpreted to mean that if the CIRP fails to produce a

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**Application:** In this case, the Resolution Professional did not receive any resolution plans,

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## Parties

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

## Timeline

- **2018-01-01 — CP/1215/IB/201…**: CP/1215/IB/2018 was…
- **2019-03-15 — CIRP Commen…**: The Corporate Insolvency…

## 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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