# In the matter of Tiruppur Surya Textiles P Limited CP-467-(IB)-2017

> NCLT judgment dated 2018-01-11. Citation: TCN-2018-NCLT-01945. The case involves an application filed to wind up M/s. Tiruppur Surya Textiles Pvt Limited,…

- **Court:** NCLT
- **Order date:** 11 Jan 2018
- **Citation:** TCN-2018-NCLT-01945
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tiruppur-surya-textiles-p-limited-cp-467-ib-2017-0fbb4c36

## Summary

### Background

The case involves an application filed to wind up M/s. Tiruppur Surya Textiles 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 period of 180 days for the CIRP expired on 2017-12-12, and an extension of 30 days was granted. The Resolution Professional (RP) was appointed on the recommendation of the Committee of Creditors (CoC).

## Facts

M/s. Tiruppur Surya Textiles Pvt Limited underwent Corporate Insolvency Resolution Process (CIRP) starting 2017-06-14, initiated by the Corporate Debtor itself. The CIRP period of 180 days expired on 2017-12-12, with a 30-day extension granted. The company's business, a textile mill, was already at a standstill with manufacturing units possessed by the Financial Creditor. The company's facilities are partly on its own land and partly on land owned by its promoters, lacking any formal lease agreement. The Directors are guarantors, and their lands are mortgaged to State Bank of India. The claims of debt received amounted to Rs.230.73 Crores, with Rs.166.66 Crores admitted, including Rs.165.88 Crores to Financial Creditors and Rs.0.78 Crores to Operational Creditors.

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor should be allowed based on the …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the facts presented by the RP, including the

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** In this case, the CoC voted for liquidation, and the RP presented facts

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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 Textiles…
- **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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