# In the matter of Oneworld Industries Private Limited MA 2753-2019 in C.P.(IB)-1980-(MB)-2018

> NCLT judgment dated 2019-11-15. Citation: TCN-2019-NCLT-00583. The case involves an application for liquidation of One World Industries Private Limited under…

- **Court:** NCLT
- **Order date:** 15 Nov 2019
- **Citation:** TCN-2019-NCLT-00583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/oneworld-industries-private-limited-ma-2753-2019-in-cpib-1980-mb-2018-5812814f

## Summary

### Background

The case involves an application for liquidation of One World Industries Private Limited under Section 33 of the Insolvency and Bankruptcy Code, 2016. Shanaya Fashions, an operational creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against One World Industries Private Limited. The CIRP was admitted on 16.11.2018, and Mr. Ajay Gupta was appointed as the Interim Resolution Professional (IRP). Subsequently, Mr. Santanu T Ray was appointed as the Resolution Professional. Despite multiple attempts to find a viable resolution plan, the Committee of Creditors (COC) ultimately decided to initiate liquidation proceedings as the resolution plans received did not comply with the eligibility criteria.

## Facts

Shanaya Fashions, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against One World Industries Private Limited ('Corporate Debtor'). The application was admitted on 2018-11-16, initiating the Corporate Insolvency Resolution Process (CIRP). Mr. Ajay Gupta was appointed as the Interim Resolution Professional (IRP), followed by Mr. Santanu T Ray as the Resolution Professional (RP). Several attempts were made to find a resolution plan, with multiple invitations for expression of interest. However, the prospective resolution applicants either failed to deposit the required earnest money or their plans did not meet the eligibility criteria set by the Committee of Creditors (COC). The COC, in its meeting held on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, One World Industries Private Limited, should be liquidated under …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The Committee of Creditors (COC) determined that the resolution plans received were not

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation proceedings when

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**Application:** In this case, the COC voted in favor of liquidation due to the lack of

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Respondents:** One World…

## Timeline

- **2018-11-16 — CIRP Admi…**: The application for CIRP against One World…
- **2018-12-13 — COC Meet…**: First meeting of 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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