# In the matter of Bohra Fashions Private Limited

> NCLT judgment dated 2023-10-19. Citation: TCN-2023-NCLT-01104. The case pertains to an application filed by the Resolution Professional (RP) under Section 33…

- **Court:** NCLT
- **Order date:** 19 Oct 2023
- **Citation:** TCN-2023-NCLT-01104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bohra-fashions-private-limited-cd558fea

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) under Section 33 read with Section 34 of the Insolvency & Bankruptcy Code (IBC), 2016, seeking an order for the liquidation of the Corporate Debtor, M/s. Bohra Fashions Private Limited. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 2022-05-10 following an application by the Operational Creditor, Holzwood Industries Private Limited, under Section 9 of the IBC. Atul Jaswantrai Sheth was appointed as the Interim Resolution Professional (IRP). The applicant submitted that the respondents are the directors of the suspended management of M/s. Bohra Fashions Private Limited. The first meeting of the Committee of Creditors (CoC) was held on

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## Facts

The Corporate Debtor, M/s. Bohra Fashions Private Limited, was admitted into CIRP on 2022-05-10 based on an application by Holzwood Industries Private Limited under Section 9 of the IBC. Atul Jaswantrai Sheth was appointed as the IRP. The respondents are the suspended directors of the Corporate Debtor. The first CoC meeting was on 2022-06-21, and the second on 2022-07-27, where the applicant was appointed as RP. Form –G was published on 2022-08-06. In the fifth CoC meeting on 2022-10-28, the members were informed that only Nakshatra Corporate Advisors Limited submitted an EOI but failed to submit a resolution plan by 2022-10-06. The CoC decided to initiate liquidation with 100% voting. The respondents filed objections, which were denied by the applicant. The Corporate

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## Issues and analysis

### Issue 1: Whether the application for liquidation under Section 33 read with Section 34 of the IBC should be …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) is paramount in deciding

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**Reasoning:** The court noted that the CoC had decided to liquidate the Corporate Debtor with 100%

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**Interpretation:** Section 33 of the IBC allows for the initiation of liquidation proceedings when

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**Application:** In this case, the CoC's decision to liquidate the Corporate Debtor was made

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Atul S…
- **Respondents:** Bohra Fashions…; Sanjay…
- **Advocates:** Kuldeep A…; Shivam D…

## Timeline

- **2022-05-10 — Admission in…**: Corporate Debtor admitted into Corporate…
- **2022-06-21 — First CoC M…**: First meeting of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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