# In the matter of Tiruppur Surya Hitec Apparels Pvt. Limited CP-468-(IB)-2017

> NCLT judgment dated 2018-01-11. Citation: TCN-2018-NCLT-01944. The case involves an application filed to order the winding up of M/s. Tiruppur Surya Hitec…

- **Court:** NCLT
- **Order date:** 11 Jan 2018
- **Citation:** TCN-2018-NCLT-01944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tiruppur-surya-hitec-apparels-pvt-limited-cp-468-ib-2017-0e69ed99

## Summary

### Background

The case involves an application filed to order the winding up of M/s. Tiruppur Surya Hitec Apparels Pvt Limited, which was undergoing Corporate Insolvency Resolution Process (CIRP) since 2017-06-14. The CIRP was initiated by the Corporate Debtor itself under Section 10 of the Insolvency and Bankruptcy Code, 2016. The 180-day period for CIRP expired on 2017-12-12, and a 30-day extension was granted. The Resolution Professional (RP) was appointed on the recommendation of the Committee of Creditors (CoC). The CoC decided on liquidation of the Corporate Debtor under Section 33(2) of the Code.

## Facts

M/s. Tiruppur Surya Hitec Apparels Pvt Limited was undergoing Corporate Insolvency Resolution Process (CIRP) since 2017-06-14. The CIRP was initiated by the Corporate Debtor itself under Section 10 of the Insolvency and Bankruptcy Code, 2016. The 180-day period for CIRP expired on 2017-12-12, and a 30-day extension was granted. The claims of debt received amounted to Rs.154.91 Crores, while the claims admitted were Rs.153.70 Crores, comprising Rs.151.19 Crores due to Financial Creditors and Rs.2.51 Crores due to Operational Creditors. The business of the Corporate Debtor involved dyeing, embroidering, cutting, finishing, and allied works in connection with hosiery business. The company's financial position was stretched, and its operations were leased out for job work.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, M/s. Tiruppur Surya Hitec Apparels …

**Ratio:** Section 33(2) of the I&B Code, 2016, allows for the liquidation of a corporate debtor

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**Reasoning:** The CoC, after careful assessment of the situation, concluded that there were no other

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**Interpretation:** Section 33(2) provides the legal basis for the CoC to decide on liquidation

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**Application:** In this case, the CoC voted with a 100% majority in its 5th Meeting for the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** G.V.Ravi…
- **Respondents:** Tiruppur Surya…

## Timeline

- **2017-06-14 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) commenced for M/s. Tiruppur Surya Hitec…
- **2017-12-12 — CIRP Period…**: The initial 180-day…

## 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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