# In the matter of KKK Cotspin Pvt. Ltd. CA No. 295-2018 in CP (IB) No. 127-Chd-Pb-2017

> NCLT judgment dated 2018-09-25. Citation: TCN-2018-NCLT-00721. UCO Bank initiated Corporate Insolvency Resolution Process (CIRP) against KKK Cotspin Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 25 Sept 2018
- **Citation:** TCN-2018-NCLT-00721
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kkk-cotspin-pvt-ltd-ca-no-295-2018-in-cp-ib-no-127-chd-pb-2017-bdf708d0

## Summary

### Background

UCO Bank initiated Corporate Insolvency Resolution Process (CIRP) against KKK Cotspin Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2018-01-25, and a moratorium was declared. Vivek Kumar Arora was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Public announcements were made to invite resolution plans. Despite multiple attempts and invitations, no viable resolution plan was received. The Committee of Creditors (COC), consisting of UCO Bank and Allahabad Bank, ultimately decided to liquidate the corporate debtor.

## Facts

UCO Bank, a financial creditor, initiated CIRP against KKK Cotspin Pvt. Ltd. The CIRP was triggered under Section 7 of the IBC. The petition was admitted on 2018-01-25. Vivek Kumar Arora was appointed as IRP on 2018-01-30 and later confirmed as RP. Public announcements were made on 2018-02-01 to invite resolution plans. The COC was constituted on 2018-02-20, comprising UCO Bank (83.67% voting share) and Allahabad Bank (16.33% voting share). Despite multiple invitations and publications (including Form G), no resolution plan was received. The promoter directors initially expressed interest but later cited a lack of resources. The COC unanimously decided to liquidate the corporate debtor in its meeting on 2018-07-18. The RP then filed an application for liquidation,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, KKK Cotspin Pvt. Ltd., should be liquidated under Section 33(2) of …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The court reasoned that despite multiple attempts to find a resolution plan, including

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

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**Application:** In this case, the RP submitted an application intimating the Adjudicating

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** UCO B…
- **Respondents:** KKK Cotspin Pvt.…; M/s. KKK Cotspin…
- **Advocates:** Arora Vishwas…

## Timeline

- **2018-01-25 — Petition Ad…**: The petition filed by UCO Bank under Section 7 of the IBC was admitted, and a moratorium…
- **2018-01-30 — Appointment…**: Shri Vivek Kumar Arora was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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