# In the matter of Enfield Apparels Limited

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00365. The case involves an application (IA(IBC)/1509(KB)2023) filed under section 54 of the…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00365
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/enfield-apparels-limited-4e36865c

## Summary

### Background

The case involves an application (IA(IBC)/1509(KB)2023) filed under section 54 of the Insolvency and Bankruptcy Code, 2016 ("IBC 2016") by the Liquidator of M/s. Enfield Apparels Limited, the Corporate Debtor, seeking dissolution of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 06/08/2018, and Mr. Kanchan Dutta was appointed as the Interim Resolution Professional (IRP). A liquidation order was passed on 04/04/2019, appointing the applicant as the Liquidator. Public announcements were made to invite stakeholders to submit their claims. The Corporate Debtor had two major assets: a leasehold factory unit and plant and machineries. E-auctions were conducted for the plant and machineries, and

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## Facts

The Corporate Debtor, M/s. Enfield Apparels Limited, underwent CIRP initiated on 06/08/2018. Mr. Kanchan Dutta was appointed as IRP and later as Liquidator on 04/04/2019. The Corporate Debtor possessed two major assets: a leasehold factory unit consisting of 4 modules totaling 45,208 Sft. and plant and machineries. The Liquidator conducted e-auctions for the plant and machineries, with Anaadih Vincom Pvt. Ltd. declared as the successful buyer on 24/02/2020. The factory lease was granted by WBIDC for 99 years, and Cotton Casuals (India) Pvt. Ltd. was declared the successful bidder for the transfer of the residual lease period. A dispute arose regarding transfer fees payable to WBIDC, which was ultimately resolved after an appeal to NCLAT was dismissed on 17/12/2021. The

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## Issues and analysis

### Issue 1: Whether the affairs of the Corporate Debtor were completely liquidated after realizing the assets …

**Ratio:** Section 53 of the IBC, 2016 mandates the order of priority for distribution of assets

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**Reasoning:** The Ld. Counsel appearing for the Liquidator presented documents showing that the assets

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**Interpretation:** Section 53 of the IBC, 2016 establishes a waterfall mechanism for the

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**Application:** The court reviewed the documents and found that the Liquidator had complied

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Respondents:** Enfield Apparels…
- **Advocates:** Rahul A…; Aditya G…

## Timeline

- **2018-08-06 — Initiation…**: CIRP was initiated…
- **2019-04-04 — Liquidation…**: Liquidation order was passed, appointing…

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