# In the matter of Priknit Retails Ltd. IA No.138-2020 in CP (IB) No. 398-Chd-Hry-2018

> NCLT judgment dated 2020-05-18. Citation: TCN-2020-NCLT-01349. The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Priknit Retails Ltd.…

- **Court:** NCLT
- **Order date:** 18 May 2020
- **Citation:** TCN-2020-NCLT-01349
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/priknit-retails-ltd-ia-no138-2020-in-cp-ib-no-398-chd-hry-2018-2d780c57

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) of Priknit Retails Ltd. initiated by State Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated following the admission of the petition. An Interim Resolution Professional (IRP), Shri Sanjay Kumar Aggarwal, was appointed. The Committee of Creditors (CoC) was constituted, comprising State Bank of India and ASREC (India) Ltd. The IRP was later confirmed as Resolution Professional (RP). Despite inviting Expression of Interest (EOI), no resolution plan was received. The CoC decided not to request an extension of the CIRP and recommended the liquidation of Priknit.

## Facts

State Bank of India initiated CIRP against Priknit Retails Ltd. under Section 7 of the IBC. The petition was admitted, and Sanjay Kumar Aggarwal was appointed as IRP, later confirmed as RP. The CoC consisted of State Bank of India (90.92% voting share) and ASREC (India) Ltd. (9.08% voting share). Despite inviting EOIs, no resolution plan was received by the deadline. The CoC determined that Priknit was not a going concern due to a lack of operations, inventory, and assets. The CoC decided not to extend the CIRP and recommended liquidation. The 8th CoC meeting was held on 06.03.2020. The CIRP expired on 09.03.2020 without a resolution plan. The CoC resolved with 90.08% voting share to liquidate Priknit. Sanjay Kumar Aggarwal submitted his written consent to act as

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## Issues and analysis

### Issue 1: Whether the requirements of Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 are …

**Ratio:** Section 33(1)(a) of the Code states that where the Adjudicating Authority does not

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**Reasoning:** The Adjudicating Authority (AA) observed that no resolution plan was received before the

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**Interpretation:** Section 33(1)(a) mandates liquidation if no resolution plan is received within

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**Application:** Since no resolution plan was received by the expiry of the CIRP, and the CoC

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** State Bank of…
- **Respondents:** Priknit Retails…; M/s Priknit…

## Timeline

- **2019-09-11 — Petition Ad…**: Petition under Section 7 of the Code filed by State Bank of India was admitted, and CIRP…
- **2019-10-05 — CoC Meet…**: First meeting of CoC was held, and the IRP was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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