# In the matter of Unitex Apparels Private Limited I.A. No. 395 of 2020 in C.P. (IB) No. 214-BB-2019

> NCLT judgment dated 2020-09-21. Citation: TCN-2020-NCLT-00575. The case involves an application (I.A.No.395/2020) filed in C.P.(IB)No.214/BB/2019 by Ratnakar…

- **Court:** NCLT
- **Order date:** 21 Sept 2020
- **Citation:** TCN-2020-NCLT-00575
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/unitex-apparels-private-limited-ia-no-395-of-2020-in-cp-ib-no-214-bb-2019-5389b1d0

## Summary

### Background

The case involves an application (I.A.No.395/2020) filed in C.P.(IB)No.214/BB/2019 by Ratnakar Shetty, the Resolution Professional (RP) of M/s. Unitex Apparels Private Limited, seeking the initiation of liquidation proceedings for the Corporate Debtor under Section 33(2) of the I&B Code, 2016, and to appoint him as the Liquidator. The Corporate Insolvency Resolution Process (CIRP) was initiated based on a petition filed by M/s. Madura Coats Private Limited under Section 9 of the IBC. The RP issued public announcements, constituted a Committee of Creditors (COC), and invited expressions of interest (EOI). However, no resolution plan was received, leading the RP to recommend liquidation.

## Facts

M/s. Madura Coats Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Unitex Apparels Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority admitted the petition on October 29, 2019, and appointed an Interim Resolution Professional (IRP). The IRP made public announcements and constituted a Committee of Creditors (COC) consisting of twenty financial creditors. The first COC meeting was held on December 6, 2019, where the existing IRP was approved as the Resolution Professional (RP). The RP appointed registered valuers to determine the liquidation value of the company's assets. The RP prepared an information memorandum and invited expressions of interest (EOI) but received no

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Unitex Apparels Private Limited, should be liquidated under …

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

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**Reasoning:** The court reasoned that the Resolution Professional (RP) and the Committee of Creditors

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**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if all reasonable efforts

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**Application:** In this case, the RP and COC made efforts to find a resolution plan, but none

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** M/s Unitex…

## Timeline

- **2019-10-29 — CIRP Init…**: The Adjudicating Authority admitted the petition filed by M/s. Madura Coats Private…
- **2019-11-08 — Public Annou…**: The Interim Resolution Professional (IRP) issued a public announcement in Form A in…

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