# In the matter of C A V Cotton Mills Private Limite dIA-120(CHE)-2021 in IBA-881-2019

> NCLT judgment dated 2022-03-11. Citation: TCN-2022-NCLT-03789. The application IA/120(CHE)/2021 was filed under Section 33(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Mar 2022
- **Citation:** TCN-2022-NCLT-03789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/c-a-v-cotton-mills-private-limite-dia-120che-2021-in-iba-881-2019-7064a61f

## Summary

### Background

The application IA/120(CHE)/2021 was filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, by the Resolution Professional of C A V Cotton Mills Private Limited, seeking an order to liquidate the Corporate Debtor and appoint the Resolution Professional as Liquidator. The CIRP was initiated on 27.09.2019, and Mr. S. Sridhar was appointed as Interim Resolution Professional (IRP). The IRP made a public announcement on 02.10.2019, receiving claims from two financial creditors: State Bank of India (SBI) and Bank of Baroda (BoB). The CoC was constituted with SBI (71.28%) and BoB (28.72%) holding voting shares. In a meeting on 25.10.2019, a resolution was passed to appoint another Resolution Professional. The Adjudicating Authority appointed the

…

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against C A V Cotton Mills Private Limited on 27.09.2019. S. Sridhar was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 02.10.2019, and claims were received from two financial creditors: State Bank of India (SBI) and Bank of Baroda (BoB). The Committee of Creditors (CoC) was constituted with SBI holding 71.28% and BoB holding 28.72% of the voting share. In a meeting on 25.10.2019, a resolution was passed to appoint another Resolution Professional. The Adjudicating Authority appointed N. Sivachalam as the Resolution Professional on 12.12.2019. The RP appointed valuers for the Corporate Debtor's assets on 09.01.2020. The erstwhile director of the Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, C A V Cotton Mills Private …

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

…

**Reasoning:** The Adjudicating Authority considered the submissions of the Resolution Professional and

…

**Interpretation:** Section 33(2) of the IBC is interpreted to mean that if the CIRP fails to

…

**Application:** In this case, since no resolution plan was approved and the CoC resolved to

…

## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** N. Sivac…
- **Respondents:** C A V Cotton…
- **Advocates:** M.S. Viswa…; V. Maniv…; +1 more

## Timeline

- **2019-09-27 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against C A V Cotton Mills…
- **2019-09-27 — Appointment…**: Mr. S. Sridhar appointed as Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/c-a-v-cotton-mills-private-limite-dia-120che-2021-in-iba-881-2019-7064a61f