# In the matter of Subhaxmi Dyeing and Printing Mills Pvt. Ltd. IA-104(AHM)-2021 in CP (IB) 40 of 2018

> NCLT judgment dated 2021-03-10. Citation: TCN-2021-NCLT-02753. The case pertains to the insolvency resolution process of Subhaxmi Dying & Printing Mills Pvt.…

- **Court:** NCLT
- **Order date:** 10 Mar 2021
- **Citation:** TCN-2021-NCLT-02753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/subhaxmi-dyeing-and-printing-mills-pvt-ltd-ia-104ahm-2021-in-cp-ib-40-of-2018-71544267

## Summary

### Background

The case pertains to the insolvency resolution process of Subhaxmi Dying & Printing Mills Pvt. Ltd. initiated under the Insolvency and Bankruptcy Code (IBC). The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP), Mr. Kailash T Shah, was appointed, who was later confirmed as the Resolution Professional (RP). Due to the absence of assets within the company, a resolution for the publication of Form G and conducting a transaction audit was rejected by the Committee of Creditors (COC). The COC, in its second meeting, passed a resolution for the liquidation of the Corporate Debtor with 100% voting, authorizing the RP to file an application under Section 33 of the IBC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Subhaxmi Dying & Printing Mills Pvt. Ltd. C.P.(I.B) No. 40/2019 was admitted on 2020-10-14. Mr. Kailash T Shah was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The company had no assets, leading to the rejection of a resolution for publishing Form G and conducting a transaction audit. The Committee of Creditors (COC) voted 100% in favor of liquidating the Corporate Debtor and authorized the RP to file an application for liquidation under Section 33 of the Insolvency and Bankruptcy Code (IBC). The RP submitted written consent to act as liquidator. The Adjudicating Authority considered the COC's decision and the absence of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The commercial wisdom of the Committee of Creditors (COC) cannot be interfered with by

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**Reasoning:** The court relied on the Supreme Court's judgment in the Essar Steel India Limited case,

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**Interpretation:** The interpretation is that the IBC framework grants significant autonomy to the

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**Application:** In this case, the COC voted 100% in favor of liquidating the Corporate Debtor.

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Subhaxmi Dying &…

## Timeline

- **2019-01-01 — C.P.(I.B)…**: C.P.(I.B) No. 40/2019…
- **2020-10-14 — Admission of C…**: C.P.(I.B) No. 40/2019…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/subhaxmi-dyeing-and-printing-mills-pvt-ltd-ia-104ahm-2021-in-cp-ib-40-of-2018-71544267