# In the matter of Swastik Spinners (India) Private Limited MA-445-2018 In CP-288-IB-CB-2018

> NCLT judgment dated 2019-02-22. Citation: TCN-2019-NCLT-04717. The case involves an application (MA/445/2018) filed under Section 33(2) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 22 Feb 2019
- **Citation:** TCN-2019-NCLT-04717
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swastik-spinners-india-private-limited-ma-445-2018-in-cp-288-ib-cb-2018-ae5913f3

## Summary

### Background

The case involves an application (MA/445/2018) filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, seeking liquidation of M/s. Swastik Spinners (India) Private Limited. The Corporate Debtor had initially filed an application under Section 10 of the I&B Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority admitted the application and initiated the CIR Process. An Interim Resolution Professional (IRP), Mr. S. Muthuraju, was appointed, and a moratorium was declared.

## Facts

M/s. Swastik Spinners (India) Private Limited faced insolvency proceedings. Initially, the Corporate Debtor itself filed an application under Section 10 of the I&B Code, 2016 to initiate CIRP. The Adjudicating Authority admitted the application on 22.03.2018. Mr. S. Muthuraju was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional. A moratorium was declared. The IRP took over the management and invited claims from creditors. In the first meeting of the CoC on 10.05.2018, Mr. S. Muthuraju was appointed as Resolution Professional. An 'Expression of Interest' was invited for resolution plans, with a deadline of 01.08.2018. On 31.08.2018, a resolution plan was received from a promoter, Mr. S. V. Ramaswamy, for Rs.6 Crores.

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by …

**Ratio:** The Committee of Creditors (CoC) has the authority to evaluate the viability of a

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**Reasoning:** The CoC deliberated on the resolution plan submitted by the promoter and concluded that

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**Interpretation:** The I&B Code empowers the CoC to make informed decisions regarding the

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**Application:** In this case, the CoC applied its judgment and determined that the resolution

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** S. Muth…
- **Respondents:** M/s. Swastik…

## Timeline

- **2018-03-22 — Admission of Ap…**: The Adjudicating Authority admitted the application to initiate the CIR Process against…
- **2018-05-10 — Appointment of…**: Mr. S. Muthuraju was appointed as Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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