# In the matter of Supreme Tex Mart Ltd. CA Nos. 265 & 266-2018 in CP (IB) No. 67-Chd-Pb-2017

> NCLT judgment dated 2018-08-08. Citation: TCN-2018-NCLT-00973. The case involves corporate insolvency resolution process (CIRP) initiated against Supreme Tex…

- **Court:** NCLT
- **Order date:** 8 Aug 2018
- **Citation:** TCN-2018-NCLT-00973
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/supreme-tex-mart-ltd-ca-nos-265-266-2018-in-cp-ib-no-67-chd-pb-2017-576e2dfa

## Summary

### Background

The case involves corporate insolvency resolution process (CIRP) initiated against Supreme Tex Mart Ltd. based on an application filed by Allahabad Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 29.09.2017, and a moratorium was declared. Mr. Bhupesh Gupta was appointed as the Interim Resolution Professional (IRP). The IRP constituted a Committee of Creditors (CoC). Several meetings of the CoC were held to invite Expression of Interest (EOI) and consider resolution plans. CA No.265 of 2018 was filed by Supreme Association of Employees of the Corporate Debtor, seeking revival of the Corporate Debtor and opposing liquidation. CA No.266 of 2018 was filed by the Resolution Professional.

## Facts

Allahabad Bank filed CP(IB) No.67/Chd/Pb/2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Supreme Tex Mart Ltd., initiating the CIRP. The petition was admitted on 2017-09-29, and a moratorium was declared. Bhupesh Gupta was appointed as the Interim Resolution Professional (IRP). The IRP formed a Committee of Creditors (CoC) consisting of 12 financial creditors. The CoC confirmed the IRP as the Resolution Professional. The CoC finalized criteria for inviting Expression of Interest (EOI) for resolution plans. Four entities submitted EOIs, but the CoC decided to re-invite EOIs. The Resolution Professional filed CA No.76 of 2018, seeking a 90-day extension, which was granted on 2018-03-23. Two resolution plans were received, one of which was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should undergo liquidation, given the expiry of the 270-day CIRP …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code mandates liquidation if no resolution

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**Reasoning:** The court reasoned that the 270-day period for the CIRP had expired on 2018-06-26, and no

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**Interpretation:** Section 33 is interpreted strictly to mean that if the CIRP does not result in

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**Application:** The court applied Section 33 to the facts of the case, noting that the 270-day

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Allahabad…
- **Respondents:** Supreme Tex Mart…

## Timeline

- **2017-09-29 — Admission of…**: Petition filed by Allahabad Bank…
- **2017-10-11 — Appointment…**: Mr. Bhupesh Gupta appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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