# In the matter of Tiruppur Surya Hitec Apparel Private Limited MA-386-2019 in CP-468-IB-CB-2017

> NCLT judgment dated 2019-08-19. Citation: TCN-2019-NCLT-01923. The case involves a liquidation application against Tiruppur Surya Hitec Apparel Private…

- **Court:** NCLT
- **Order date:** 19 Aug 2019
- **Citation:** TCN-2019-NCLT-01923
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tiruppur-surya-hitec-apparel-private-limited-ma-386-2019-in-cp-468-ib-cb-2017-06eeec58

## Summary

### Background

The case involves a liquidation application against Tiruppur Surya Hitec Apparel Private Limited. The liquidator filed an MA against Shark Dyeing Mills (R1) and others, seeking relief for the removal of sludge and effluents accumulated in the dyeing unit of the Corporate Debtor. R1 was running the dyeing business on the Corporate Debtor's premises as a lessee. The Tamil Nadu Pollution Control Board (R2) had issued proceedings for immediate closure and disconnection of the dyeing unit due to irregularities in running the business and not clearing sludge. The Corporate Debtor was initially a partnership firm, M/s. Surya Textile Processing Mills, which later converted. R1 took the unit on lease in 2015/2016 and continued until ordered to hand over possession on

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## Facts

Tiruppur Surya Hitec Apparel Private Limited is undergoing liquidation. An MA was filed by the liquidator against Shark Dyeing Mills (R1) and others, seeking the removal of sludge and effluents from the Corporate Debtor's dyeing unit. R1 operated the unit as a lessee. The Tamil Nadu Pollution Control Board (R2) had ordered the unit's closure due to pollution control violations. The business was initially a partnership, M/s. Surya Textile Processing Mills, which later became the Corporate Debtor. R1 took the unit on lease in 2015/2016. CIRP was initiated on 14.06.2017, and liquidation was ordered on 11.02.2018. R1 handed over possession of the unit on 14.03.2019. The unit accumulated 1028 tons of sludge. R1 did not obtain authorization for transportation and disposal of

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## Issues and analysis

### Issue 1: Whether R1, as the lessee of the Corporate Debtor's dyeing unit, is responsible for the removal of …

**Ratio:** The duty to remove sludge and effluents lies with the entity operating the business that

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**Reasoning:** The court notes R1's inconsistent statements regarding the liquidator's role and

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**Interpretation:** This interprets the responsibility for environmental remediation as falling on

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**Application:** R1, as the operator of the dyeing unit, is held responsible for removing the

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## Parties

- **Judges:** B.S.V. Prakash…; Anil Ku…
- **Appellants:** G.V Ravikumar,…
- **Respondents:** M/s. Tiruppur…; M/s. Shark Dyeing…
- **Advocates:** Shri. B. Dh…; Swapna Su…; +3 more

## Timeline

- **2017-06-14 — CIRP Init…**: Corporate Insolvency Resolution Process…
- **2018-02-11 — Liquidation…**: Liquidation ordered for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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