# In the matter of Karpagam Spinners Private Limited TCP-225-(IB)-2017

> NCLT judgment dated 2018-02-22. Citation: TCN-2018-NCLT-01786. The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Feb 2018
- **Citation:** TCN-2018-NCLT-01786
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karpagam-spinners-private-limited-tcp-225-ib-2017-894a606c

## Summary

### Background

The case involves an application filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the winding up of M/s. Karpagam Spinners Private Limited. The Corporate Insolvency Resolution Process (CIRP) had been initiated against the company. The CIRP was initiated by the Operational Creditor under Section 9 of the I&B Code 2016. Mr. R. Raghavendran was appointed as Interim Resolution Professional (IRP). Subsequently, Mr. G. Gunasekaran was appointed as Resolution Professional (RP) based on the recommendation of the Committee of Creditors (CoC).

## Facts

M/s. Aruppukottai Sri Jayavilas Limited, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Karpagam Spinners Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (I&B Code), 2016. Mr. R. Raghavendran was initially appointed as the Interim Resolution Professional (IRP), followed by Mr. G. Gunasekaran as the Resolution Professional (RP). The CIRP commenced on 2017-07-19 for 180 days, expiring on 2018-01-16. The Committee of Creditors (CoC) did not approve any resolution plan within the stipulated period. In its 6th meeting held on 2017-12-18, the CoC recommended the liquidation of the Corporate Debtor. The Adjudicating Authority did not receive any resolution plan under Section 30(6)

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority is justified in ordering the liquidation of the Corporate Debtor …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority observed that no resolution plan was received under

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**Interpretation:** Section 33(2) provides a clear pathway for liquidation when CIRP fails to

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**Application:** In this case, the absence of an approved resolution plan and the CoC's

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** G. Gunase…
- **Respondents:** M/s. Karpagam…; M/s. Aruppukottai…

## Timeline

- **2017-07-19 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2017-10-20 — RP Appoin…**: Mr. G. Gunasekaran appointed as Resolution Professional (RP) in the 3rd meeting of the…

## 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)

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