# In the matter of Shamken Spinner Limited CA No. 85 & 322-2019 in Company Petition No. (IB) 131-ALD-2017

> NCLT judgment dated 26 Oct 2021. Citation: TCN-2021-NCLT-00697. The case involves two connected applications, CA No. 85/2019 and CA No. 322/2019, which were…

- **Court:** NCLT
- **Order date:** 26 Oct 2021
- **Citation:** TCN-2021-NCLT-00697
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shamken-spinner-limited-ca-no-85-322-2019-in-company-petition-no-ib-131-ald-2017-9fb7f56d

## Summary

### Background

The case involves two connected applications, CA No. 85/2019 and CA No. 322/2019, which were disposed of through a common order. CA No. 85/2019 was filed by the Resolution Professional (RP) under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking directions for the liquidation of the Corporate Debtor, M/s Shamken Spinners Limited, and the appointment of a liquidator. The Corporate Debtor had been admitted into the Corporate Insolvency Resolution Process (CIRP) by an order dated May 29, 2018. The RP, initially appointed as an Interim Resolution Professional (IRP), conducted the CIRP according to the IBC and CIRP Regulations, 2016.

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## Facts

The Corporate Debtor, M/s Shamken Spinners Limited, was admitted into the Corporate Insolvency Resolution Process (CIRP) by an order of the Adjudicating Authority dated May 29, 2018. The Resolution Professional (RP) was initially appointed as an Interim Resolution Professional (IRP) and conducted the CIRP in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 and the CIRP Regulations, 2016.

The Information Memorandum was approved by the Committee of Creditors (CoC) in its meeting held on August 7, 2018. Following this approval, Form-G was published, setting the last date for the submission of a Resolution Plan as October 12, 2018. In response, three Expressions of Interest (EOIs) were received from prospective Resolution Applicants.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s Shamken Spinners Limited, should be liquidated under Section…

**Ratio:** When no resolution plan is approved by the Committee of Creditors and the Corporate…

**Reasoning:** The court reasoned that no resolution plan had been approved by the Committee of…

**Interpretation:** The court interpreted Section 33(1)(a) of the IBC as a mandatory provision…

**Application:** In this case, despite multiple opportunities, no viable resolution plan was…

## Parties

- **Judges:** Virendra Kumar…; Rohit K…
- **Advocates:** Zain A…; Dinkar…; +1 more

## Timeline

- **May 29, 2018 — CIRP Admi…**: The Corporate Debtor was admitted into Corporate Insolvency Resolution Process by the…
- **August 7, 2018 — Information Memorandum…**: The Information Memorandum was approved by…

## 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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