# In the matter of KMP SPINNERS PRIVATE LIMITED

> NCLT judgment dated 2025-11-18. Citation: TCN-2025-NCLT-01673. The case involves an application for liquidation of KMP Spinners Private Limited. CIRP was…

- **Court:** NCLT
- **Order date:** 18 Nov 2025
- **Citation:** TCN-2025-NCLT-01673
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/kmp-spinners-private-limited-80aa3e32

## Summary

### Background

The case involves an application for liquidation of KMP Spinners Private Limited. CIRP was initiated against the Corporate Debtor based on a petition filed by the Financial Creditor, Aditya Birla Finance Limited, under Section 7 of IBC. The RP was appointed, claims were invited and verified, and a CoC was constituted.

## Facts

CIRP was initiated against KMP Spinners Private Limited based on a petition by Aditya Birla Finance Limited under Section 7 of IBC.

The CoC comprised Indian Overseas Bank (75.60% voting share) and Aditya Birla Capital Limited (24.40% voting share).

The CoC resolved to appoint the Applicant as the RP in the first CoC meeting.

The Suspended Director preferred an appeal against the order of CIRP.

The CoC decided for the liquidation of the Corporate Debtor with 100% voting.

Beleyur Resolutions Private Limited is appointed as the Liquidator.

The Corporate Debtor has been non-operational and is currently in a defunct status.

The company has not filed its Annual Accounts since the financial year 2018-19.

…

## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, KMP Spinners Private Limited, is justified based …

**Ratio:** The CoC's decision to liquidate the Corporate Debtor with 100% voting, considering the

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**Reasoning:** The CoC's decision was based on the fact that the company was non-operational, had no

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**Interpretation:** The decision aligns with the objectives of the IBC to resolve insolvency in a

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**Application:** The application for liquidation is allowed based on the CoC's decision and the

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Suspended D…; Beleyur Resolution…
- **Respondents:** KMP Spinners Pvt.…
- **Other parties:** Indian Overseas…; ADITYA BIRLA…; +3 more
- **Advocates:** T. Ravich…; Santh…

## Timeline

- **2025-07-11 — CIRP Init…**: CIRP was initiated against the Corporate…
- **2025-08-14 — 1st CoC M…**: In the 1st CoC meeting held on 14.08.2025, the CoC resolved to appoint the Applicant as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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