# In the matter of My Choice Kint and Apparels Pvt. Ltd. CP (IB)No.136-BB-2018

> NCLT judgment dated 2020-05-26. Citation: TCN-2020-NCLT-01319. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. My…

- **Court:** NCLT
- **Order date:** 26 May 2020
- **Citation:** TCN-2020-NCLT-01319
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/my-choice-kint-and-apparels-pvt-ltd-cp-ibno136-bb-2018-b73063a0

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. My Choice Knit & Apparels Pvt. Ltd. based on a petition filed by M/s. Bannari Amman Spinning Mills Ltd., an operational creditor, under Section 9 of the IBC, 2016. The Adjudicating Authority initially dismissed the case, but the order was set aside by the NCLAT, which directed the Adjudicating Authority to admit the case. CIRP was initiated, and an Interim Resolution Professional (IRP) was appointed, who was later confirmed as the Resolution Professional (RP). The company had no employees and operations were shut down since March 2019. The Committee of Creditors (CoC) decided to dissolve the Corporate Debtor as a special case, considering the absence of resolution plans and

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## Facts

M/s. Bannari Amman Spinning Mills Ltd. filed a petition under Section 9 of the IBC, 2016, against M/s. My Choice Knit & Apparels Pvt. Ltd. for defaulting on a payment of Rs. 1,07,27,295/-. The Adjudicating Authority initially dismissed the case, but the NCLAT set aside the order and directed the Adjudicating Authority to admit the case. CIRP was initiated, and Shri Ramanahalli S. Doddabyregowda was appointed as IRP and later confirmed as RP. Public announcements were made to invite claims from creditors. The RP received claims from financial creditors, including Techniks India, Aaryan Klothing Co., and Mr. Balkishan Boob, and an operational creditor, M/s. Bannari Amman Spinning Mills Ltd. The CoC was constituted, with Mr. Mohammed Shakir of Techniks India holding

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. My Choice Knit & Apparels Pvt. Ltd., should be dissolved as …

**Ratio:** Section 54 of the IBC, 2016, allows for the dissolution of a corporate debtor when its

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**Reasoning:** The CoC decided to dissolve the Corporate Debtor as there were no resolution plans

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**Interpretation:** Section 54 of the IBC is interpreted to allow for the dissolution of a

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**Application:** The facts of the case justified the dissolution of the Corporate Debtor as a

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** M/s. My Choice…

## Timeline

- **2018-01-01 — Initial F…**: M/s. Bannari Amman Spinning Mills Ltd. filed C.P. (IB) No.136/BB/2018 under Section 9 of…
- **2019-04-04 — Initial Dis…**: Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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