# In the matter of Summer India Textiles Mills Private Limited MA-102-2019 in CP-515-IB-CB-2017

> NCLT judgment dated 2019-02-08. Citation: TCN-2019-NCLT-04921. The case involves MA/102/2019 filed in CP/515/IB/CB/2017 under Section 33(1)(a) of the…

- **Court:** NCLT
- **Order date:** 8 Feb 2019
- **Citation:** TCN-2019-NCLT-04921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/summer-india-textiles-mills-private-limited-ma-102-2019-in-cp-515-ib-cb-2017-17349097

## Summary

### Background

The case involves MA/102/2019 filed in CP/515/IB/CB/2017 under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Summer India Textiles Mills Private Limited. The Resolution Professional filed an application seeking liquidation of the Corporate Debtor. The CIRP was initiated on 2017-06-13. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor on 2018-03-28. The Resolution Professional received a resolution plan from M/s. Sarathy Exports, which was placed before the CoC. The maximum period of 270 days for the CIRP was completed on 2018-10-30, and no resolution plan was approved.

## Facts

M/s. Summer India Textiles Mills Private Limited faced Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. State Bank of India initiated the CIRP as a financial creditor. The CIRP commenced on 2017-06-13. Mr. C.V. Madhusudhanan was appointed as the Interim Resolution Professional (IRP). The IRP constituted a Committee of Creditors (CoC). The CoC resolved to liquidate the Corporate Debtor on 2018-03-28. A resolution plan was received from M/s. Sarathy Exports but was not approved. The maximum CIRP period of 270 days expired on 2018-10-30 without an approved resolution plan. The Resolution Professional filed MA/102/IB/2019 seeking liquidation of the Corporate Debtor. The director of the Corporate Debtor filed various legal

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Summer India Textiles Mills Private Limited, should be …

**Ratio:** Section 33(1)(a) of the I&B Code, 2016, mandates liquidation when the CIRP period

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**Reasoning:** The court reasoned that since the maximum period of 270 days for the CIRP had expired on

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**Interpretation:** Section 33(1)(a) is interpreted to mean that upon the expiry of the CIRP period

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**Application:** The court applied the ratio to the facts of the case, noting that the CIRP

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Respondents:** M/s. Summer India…

## Timeline

- **2017-06-13 — CIRP Init…**: The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate…
- **2017-06-13 — IRP Appoi…**: Mr. C.V. Madhusudhanan was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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