# In the matter of Inmark Retail Pvt. Ltd. I.A. No. 318-2020 in C.P. (IB) No. 415-BB-2019

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00574. The case involves an application (I.A. No.318 of 2020) filed in a corporate insolvency…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/inmark-retail-pvt-ltd-ia-no-318-2020-in-cp-ib-no-415-bb-2019-ba381189

## Summary

### Background

The case involves an application (I.A. No.318 of 2020) filed in a corporate insolvency resolution process (CIRP) against M/s. Inmark Retail Private Limited. The main Company Petition (CP (IB) No.415/BB/2019) was initiated by Trend Arrest Clothing Pvt. Ltd. under Section 9 of the IBC, 2016, and was admitted on June 2, 2020. The Resolution Professional (RP) was initially Mr. Varun V.S., later replaced by Mr. M.V. Sudarshan. The Committee of Creditors (CoC) ultimately decided to liquidate the Corporate Debtor due to the inability to find resolution applicants and the erosion of the business's value.

## Facts

Trend Arrest Clothing Pvt. Ltd. filed a company petition (CP (IB) No.415/BB/2019) against Inmark Retail Private Limited under Section 9 of the IBC, 2016. The petition was admitted on June 2, 2020, initiating the Corporate Insolvency Resolution Process (CIRP). Initially, Mr. Varun V.S. was appointed as the Interim Resolution Professional (IRP), but he was later replaced by Mr. M.V. Sudarshan. The Resolution Professional (RP) assessed the financial status of Inmark Retail Private Limited, finding that its assets were worth Rs.10.08 lakhs. The estimated realizable value of the assets and liabilities was Rs.59.59 lakhs. The monthly CIRP costs exceeded this amount. The Committee of Creditors (CoC) met on August 10, 2020, and decided to liquidate the Corporate Debtor due to

…

## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, M/s. Inmark Retail Private Limited, should be …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to order the

…

**Reasoning:** The CoC, in its commercial wisdom, decided that the business of the Corporate Debtor

…

**Interpretation:** Section 33(2) of the IBC grants significant weight to the CoC's decision

…

**Application:** The CoC decided to liquidate the Corporate Debtor due to its inability to be

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Madhugiri…
- **Respondents:** Inmark Retail…; Trend Arrest…

## Timeline

- **2019-01-01 — Initiation…**: Trend Arrest Clothing Pvt. Ltd. filed CP (IB) No.415/BB/2019 against Inmark Retail…
- **2020-06-02 — Admission of…**: The Adjudicating Authority admitted the petition and initiated the Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — 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/inmark-retail-pvt-ltd-ia-no-318-2020-in-cp-ib-no-415-bb-2019-ba381189