# In the matter of BKS Leather Exports Private Limited IA(IBC)-1421(KB)2022 in CP(IB)-324(KB)2019

> NCLT judgment dated 2023-02-23. Citation: TCN-2023-NCLT-04480. The case involves an application (IA(IBC)/1421(KB)2022) filed under section 33(1)(a) of the…

- **Court:** NCLT
- **Order date:** 23 Feb 2023
- **Citation:** TCN-2023-NCLT-04480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bks-leather-exports-private-limited-iaibc-1421kb2022-in-cpib-324kb2019-6070595e

## Summary

### Background

The case involves an application (IA(IBC)/1421(KB)2022) filed under section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 by the Resolution Professional (RP) of BKS Leather Exports Private Limited, the Corporate Debtor, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against BKS Leather Exports Private Limited based on a petition filed under section 9 of the IBC by Chandak Commercial Private Limited. Mr. Pratap Mukherjee was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional. A public announcement was made inviting claims from creditors. A Committee of Creditors (CoC) was constituted, and meetings were held to discuss the resolution process. Ultimately, the

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## Facts

Chandak Commercial Private Limited initiated CIRP against BKS Leather Exports Private Limited under Section 9 of the IBC. Mr. Pratap Mukherjee was appointed as the IRP and later as the RP. A public announcement was made to invite claims from creditors. The Committee of Creditors (CoC) was formed, consisting of one Secured Financial Creditor, one Unsecured Financial Creditor, and two Operational Creditors. The CoC, in its meeting on 29/09/2022, resolved to liquidate the Corporate Debtor with more than 94% voting share, citing the lack of viable resolution plans due to the company being a closed concern with limited tangible assets. The 180-day CIRP period expired on 25/12/2022 without any extension. The RP filed an application (IA(IBC)/1421(KB)2022) under Section

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, BKS Leather Exports Private …

**Ratio:** Section 33(1)(a) of the IBC mandates the Adjudicating Authority to pass an order of

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**Reasoning:** The CoC approved the liquidation of the Corporate Debtor with more than 94% voting share,

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**Interpretation:** Section 33 of the IBC provides a clear framework for liquidation when

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**Application:** The CoC, comprising of the creditors, voted in favor of liquidation. The RP

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** BKS Leather…
- **Advocates:** Vedika S…

## Timeline

- **2019-01-01 — CP(IB)/324(KB)/2019…**: CP(IB)/324(KB)/2019 was…
- **2022-06-29 — CIRP Initiati…**: The Adjudicating Authority ordered the initiation of CIRP against BKS Leather Exports…

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