# In the matter of CNS Fashion Retail Pvt. Ltd.

> NCLT judgment dated 2025-01-15. Citation: TCN-2025-NCLT-00626. The case pertains to the liquidation of a Corporate Debtor, with the issue of notice to…

- **Court:** NCLT
- **Order date:** 15 Jan 2025
- **Citation:** TCN-2025-NCLT-00626
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cns-fashion-retail-pvt-ltd-11746eb1

## Summary

### Background

The case pertains to the liquidation of a Corporate Debtor, with the issue of notice to ex-directors/suspended Board of Directors and Members of SCC. The order clarifies that if the Corporate Debtor lacks funds, the creditors are liable for the liquidation costs. It references Regulation 2A of the IBBI (Liquidation Process) Regulations, 2016, which deals with contributions to liquidation costs. The order also discusses the contributions made under sub-regulation (3) of regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

## Facts

The case involves the liquidation of a Corporate Debtor, Concept Group. The Corporate Debtor lacks sufficient funds to cover liquidation costs. The Insolvency and Bankruptcy Board of India (IBBI) (Liquidation Process) Regulations, 2016, specifically Regulation 2A, addresses the contributions to liquidation costs. The committee of creditors did not approve a plan under sub-regulations (3) of regulation 39B of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The liquidator is instructed to call upon the financial creditors to contribute the excess of the liquidation costs over the liquid assets of the corporate debtor. The contributions made under the plan approved under sub-regulation (3) of regulation

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## Issues and analysis

### Issue 1: Whether the ex-directors/suspended Board of Directors and Members of SCC should be issued a notice …

**Ratio:** The court has the power to issue notices to relevant parties in insolvency proceedings to

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**Reasoning:** Issuing notice to the ex-directors/suspended Board of Directors and Members of SCC

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**Interpretation:** The issuance of notice is a procedural step to ensure that all relevant parties

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**Application:** The court applied this principle by ordering the issuance of a notice to the

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Respondents:** Concept…; Cns Fashions…

## Timeline

- **2025-01-15 — Order Del…**: Order delivered on 15.01.2025 regarding…
- **2025-03-19 — Next Hearin…**: Case listed on 19.03.2025…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 49 — Transactions defrauding creditors](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-49)

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