# In the matter of Artedz Fabs Limited I.A. 588 OF 2022 in CP (IB) – 1098-IB-MB-2020

> NCLT judgment dated 2022-10-06. Citation: TCN-2022-NCLT-00834. The case pertains to I.A. 588 of 2022 filed in CP (IB) – 1098/IB/MB/2020 under Section 33(2) of…

- **Court:** NCLT
- **Order date:** 6 Oct 2022
- **Citation:** TCN-2022-NCLT-00834
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/artedz-fabs-limited-ia-588-of-2022-in-cp-ib-1098-ib-mb-2020-5ee56be5

## Summary

### Background

The case pertains to I.A. 588 of 2022 filed in CP (IB) – 1098/IB/MB/2020 under Section 33(2) of the Insolvency & Bankruptcy Code, 2016. The application was filed by the Interim Resolution Professional (IRP) seeking liquidation of Artedz Fabs Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated following the admission of a petition under Section 7 of the Code filed by the Financial Creditor, M/s. Kanoria Chembond Private Limited. The Committee of Creditors (COC) rejected the resolution plan and decided to opt for liquidation of the Corporate Debtor as a going concern.

## Facts

M/s. Kanoria Chembond Private Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Artedz Fabs Limited, leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). Mr. Jignesh Ajit Ganatra was appointed as the Interim Resolution Professional (IRP). A public announcement (Form-A) was published in newspapers. The Committee of Creditors (COC) was constituted, and a report confirming its constitution was filed with the Tribunal. An invitation for Expression of Interest (Form-G) was published. Two resolution applicants, Fortune Kottex LLP and Mr. Chetan Jain, Mr. Pravin Jain, and Mrs. Manju Jain, submitted resolution plans. The COC rejected the resolution plan submitted by Mr. Chetan Jain, Mr. Pravin Jain, and

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## Issues and analysis

### Issue 1: Whether the application for liquidation of Artedz Fabs Limited should be granted under Section …

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

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**Reasoning:** The COC rejected the resolution plan with a significant majority (81.94% voting share)

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when the

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**Application:** The COC's decision to reject the resolution plan and the expiration of the CIRP

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Jignesh Ajit…
- **Respondents:** Artedz Fabs…

## Timeline

- **2020-01-01 — Company Petiti…**: Company Petition No.…
- **2021-02-18 — Petition Ad…**: Petition admitted under…

## 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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