# In the matter of Seam Industries Limited MA 3818-MB-C-II-2019 in CP (IB) 1620-MB-C-II-2017

> NCLT judgment dated 2021-06-30. Citation: TCN-2021-NCLT-01900. The case involves an application under Section 33 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 30 Jun 2021
- **Citation:** TCN-2021-NCLT-01900
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/seam-industries-limited-ma-3818-mb-c-ii-2019-in-cp-ib-1620-mb-c-ii-2017-68d38524

## Summary

### Background

The case involves an application under Section 33 of the Insolvency and Bankruptcy Code, 2016, seeking direction for the Liquidation Process of the Corporate Debtor, Seam Industries Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following an order dated December 28, 2018. The Committee of Creditors (CoC) appointed Ms. Subrata Monindranath Maity as the Resolution Professional, which was confirmed by the Tribunal. The CoC instructed the Applicant to seek an extension of the CIRP period, which was granted until July 9, 2019, extending the period from 180 to 270 days. An application was filed seeking exclusion of time from the CIRP period, and the Tribunal excluded 60 days, extending the completion time to November 14, 2019. During the CIRP, one

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Seam Industries Limited, the Corporate Debtor, following an order dated December 28, 2018. Ms. Subrata Monindranath Maity was appointed as the Resolution Professional (RP). The Committee of Creditors (CoC) extended the CIRP period to 270 days. During the CIRP, one Resolution Plan was received but not approved by the CoC. The CIRP period lapsed on November 14, 2019, without an approved resolution plan. The CoC then directed the RP to file an application for the liquidation of the Corporate Debtor. Mr. Rahul Kavathekar provided written consent to act as the Liquidator. The RP filed an application seeking an order for the liquidation of the Corporate Debtor, stating that liquidation would be

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## Issues and analysis

### Issue 1: Whether the time period for completion of CIRP has lapsed without an approved resolution plan, …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, stipulates that where the

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**Reasoning:** The Tribunal observed that the CIRP period had lapsed on November 14, 2019, without an

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

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**Application:** In this case, the CIRP period expired without an approved resolution plan. The

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Appellants:** Subrata Monindrana…
- **Respondents:** Seam Industries…

## Timeline

- **2018-12-28 — Admission…**: The Tribunal admitted the Application for initiation of Corporate Insolvency Resolution…
- **2019-04-08 — CoC Meet…**: The CoC passed a resolution instructing the Applicant to seek extension of the CIRP…

## 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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