# 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-02240. The case pertains to the insolvency resolution of Parikh Fabrics Private Limited. An…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/parikh-fabrics-private-limited-ia-no988-2019-in-cpibno12-10-hdb-2019-a664d696

## Summary

### Background

The case pertains to the insolvency resolution of Parikh Fabrics Private Limited. An application was filed under Section 33 of the IB Code, 2016, seeking an order for liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP) was appointed, later replaced by a Resolution Professional (RP). Thirteen meetings of the Committee of Creditors (CoC) were held. An expression of interest was invited, and a resolution plan was submitted by Mr. Rajesh Laddha, which was subsequently rejected by the CoC with 100% voting against its approval.

## Facts

Parikh Fabrics Private Limited faced insolvency proceedings. The CIRP was initiated following an application under the IB Code. Mr. J. Manivannan was initially 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) convened thirteen times to deliberate on the resolution of the Corporate Debtor. An expression of interest was sought, leading to the submission of a resolution plan by Mr. Rajesh Laddha. However, the CoC rejected this plan with a unanimous vote against its approval. Consequently, the CoC resolved to recommend the liquidation of Parikh Fabrics Private Limited. The RP then filed an application under Section 33(2) of the IB Code, seeking

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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 IB Code allows the Adjudicating Authority to order liquidation if

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**Reasoning:** The CoC unanimously decided to liquidate the Corporate Debtor after the resolution plan

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**Interpretation:** Section 33(2) of the IB Code provides that if a resolution plan is not approved

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**Application:** Since the resolution plan was rejected by the CoC, and the CoC has resolved to

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## Parties

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

## Timeline

- **2019-02-08 — Appointment…**: Mr. J. Manivannan of Chennai was appointed as…
- **2019-03-07 — First COC M…**: The first meeting of the Committee of Creditors (CoC) was held. Mr. G. Satyanarayana…

## 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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