# In the matter of Parikh Fabrics Private Limited IA No.988-2019 in CP(IB)No.12-10-HDB-2019

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02235. The case involves an application filed by the Resolution Professional (RP) under Section 33 of…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/parikh-fabrics-private-limited-ia-no988-2019-in-cpibno12-10-hdb-2019-66cd5747

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order for the liquidation of the Corporate Debtor, Parikh Fabrics Private Limited, and the appointment of a liquidator. The Corporate Insolvency Resolution Process (CIRP) was initiated, and Mr. J. Manivannan was initially appointed as the Interim Resolution Professional (IRP), later replaced by Mr. G. Satyanarayana Murty. The Committee of Creditors (CoC) convened 13 times. An expression of interest was invited, and one Mr. Rajesh Laddha submitted a resolution plan, which was subsequently rejected by the CoC with 100% voting against its approval.

## Facts

Parikh Fabrics Private Limited underwent Corporate Insolvency Resolution Process (CIRP) after the admission of a company petition. Initially, Mr. J. Manivannan was appointed as the Interim Resolution Professional (IRP) but was later replaced by Mr. G. Satyanarayana Murty as the Resolution Professional (RP). The Committee of Creditors (CoC) held 13 meetings to explore resolution options. An expression of interest was invited, and Mr. Rajesh Laddha submitted a resolution plan. However, the CoC rejected the resolution plan with 100% voting against its approval. Consequently, the RP filed an application under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of Parikh Fabrics Private Limited. The CoC also unanimously resolved to liquidate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Parikh …

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

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**Reasoning:** The Committee of Creditors (CoC) unanimously decided to liquidate the Corporate Debtor,

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**Interpretation:** Section 33(2) of the IBC provides a clear pathway for liquidation when the

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**Application:** In this case, the CoC rejected the resolution plan, triggering the application

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Respondents:** Parikh Fabrics…

## Timeline

- **2019-02-08 — Appointment…**: Mr. J. Manivannan of Chennai was appointed as…
- **2019-03-07 — First COC M…**: First meeting of the Committee…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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