# In the matter of PVS Textiles Private Limited MA-943-2019 in CP-1433-IB-2018

> NCLT judgment dated 2019-09-16. Citation: TCN-2019-NCLT-01444. The case pertains to an application filed under sections 33(1)(a), 33(2) & 34(1) of the…

- **Court:** NCLT
- **Order date:** 16 Sept 2019
- **Citation:** TCN-2019-NCLT-01444
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pvs-textiles-private-limited-ma-943-2019-in-cp-1433-ib-2018-a3fe3c4b

## Summary

### Background

The case pertains to an application filed under sections 33(1)(a), 33(2) & 34(1) of the Insolvency and Bankruptcy Code (IBC), 2016, regarding M/s. PVS Textiles Private Limited. The Resolution Professional (RP) filed an MA u/s 33(2) seeking liquidation of the Corporate Debtor based on a resolution passed by the Committee of Creditors (CoC). Despite inviting expressions of interest, no Resolution Applicant came forward. The CoC approved three resolutions with 100% voting to liquidate the Corporate Debtor and appoint the present RP as the Liquidator. The company had remained closed for the last eight years, not doing business, but possessing valuable assets.

## Facts

M/s. PVS Textiles Private Limited underwent corporate insolvency resolution process (CIRP). An application was filed under sections 33(1)(a), 33(2) & 34(1) of the IBC, 2016. The Resolution Professional (RP), Mr. Mahalingam Suresh Kumar, filed an MA u/s 33(2) seeking liquidation. The 4th CoC meeting was held on 03.09.2019. The CP was admitted on 08.03.2019. The first CoC meeting was held on 05.04.2019. The CoC comprised two financial creditors: Corporation Bank and Indian Bank. Two valuers ascertained the liquidation value of the plant, machinery, and land & building. The RP determined the asset value at ₹11.24 crores (land & building: ₹5.56 crores; plant & machinery: ₹5.68 crores). The CoC, in its 2nd meeting on 16.05.2019, passed a resolution with 100%

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. PVS Textiles Private Limited, …

**Ratio:** The legal principle applied is that if no viable resolution plan is presented and the CoC

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**Reasoning:** The court reasoned that since no Resolution Applicant came forward despite the

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**Interpretation:** This issue involves the interpretation of the IBC, 2016, specifically sections

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** MAHALINGAM SURESH…
- **Respondents:** M/s. PVS Textiles…

## Timeline

- **2019-03-08 — Admission…**: The Corporate Insolvency…
- **2019-04-05 — First CoC M…**: The first meeting of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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