# In the matter of CNS Fashions Retail Private Limited

> NCLT judgment dated 2024-03-18. Citation: TCN-2024-NCLT-02036. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. CNS Fashions…

- **Court:** NCLT
- **Order date:** 18 Mar 2024
- **Citation:** TCN-2024-NCLT-02036
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cns-fashions-retail-private-limited-11899f91

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. CNS Fashions Retail Private Limited on January 20, 2023. The 180-day period for the CIRP expired on July 20, 2023. No prospective resolution applicants (PRAs) expressed interest in submitting a resolution plan. The Committee of Creditors (CoC) decided to liquidate the Corporate Debtor under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, during a meeting held on July 15, 2023.

## Facts

The CIRP commenced on 2023-01-20. The 180-day CIRP period expired on 2023-07-20. No resolution plan was received. The CoC, in its meeting held on 2023-07-15, decided to liquidate the Corporate Debtor under Section 33(2) of the IBC, 2016. The CoC's decision was approved with 100% voting share. The Corporate Debtor has no fixed assets and is not active, with no employees. The Corporate Debtor has a paid-up capital of Rs. 2.5 Crores and has losses in reserves. The RP submitted that the Corporate Debtor needs to be liquidated as per Section 33(1) of the IBC, 2016. The assets of the company available are stock of garments and current assets as advances of duties and taxes or company transferred as going concern and there are no fixed assets in the company. Prabhjit Singh

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for liquidation of the Corporate Debtor, …

**Ratio:** Section 33(1) of the IBC, 2016, mandates the Adjudicating Authority to pass an order for

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**Reasoning:** The CoC, with 100% voting share, decided to liquidate the Corporate Debtor as no

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**Interpretation:** Section 33(1) of the IBC, 2016, is interpreted to mean that the Adjudicating

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

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** M/s. Concept…
- **Respondents:** CNS Fashions…; M/s. CNS Fashions…

## Timeline

- **2023-01-20 — CIRP Commen…**: Corporate Insolvency…
- **2023-07-20 — CIRP Exp…**: The 180-day period for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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