# In the matter of Fashion Equation Private Limited

> NCLT judgment dated 2024-10-18. Citation: TCN-2024-NCLT-00400. The case pertains to the dissolution of Fashion Equations Pvt. Ltd. The Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 18 Oct 2024
- **Citation:** TCN-2024-NCLT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fashion-equation-private-limited-755a07c6

## Summary

### Background

The case pertains to the dissolution of Fashion Equations Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated, and the applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Liquidation was ordered, and the applicant was appointed as the liquidator. The Stakeholders Consultation Committee (SCC) was formed. The corporate debtor had no assets and had not been doing business since COVID. The SCC resolved to file an application to dissolve the Corporate Debtor.

## Facts

The Corporate Debtor, Fashion Equations Pvt. Ltd., underwent CIRP initiated by the Tribunal on 28.04.2022. The Applicant was appointed as IRP and later as RP. Liquidation was ordered on 08.02.2019 in IA/1377/2023 in CP/323/IB/2018, and the Applicant was appointed as the Liquidator. A Stakeholders Consultation Committee (SCC) was constituted on 21.09.2023. The Corporate Debtor had no assets and had not been doing any business since COVID. The SCC, with 76.2% voting, resolved to file an application for dissolution. The liquidator filed a synopsis showing the realization and distribution. The liquidator stated that no applications are pending before the Tribunal regarding avoidance, preferential, undervalued, or fraudulent transactions. Canara Bank was a secured financial

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor under Section 54 of the IBC, 2016 …

**Ratio:** Section 54 of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the dissolution

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**Reasoning:** The Tribunal considered the averments made in the application, the final report, and the

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**Interpretation:** Section 54 of the IBC, 2016, is interpreted to mean that once the liquidation

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**Application:** Given that Fashion Equation Private Limited had been completely liquidated, and

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** SATYADEVI A…
- **Respondents:** Fashion Equations…; Fashion Equation…

## Timeline

- **2022-04-28 — CIRP Init…**: Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) of the Corporate…
- **2019-02-08 — Liquidation…**: Tribunal ordered the liquidation of the Corporate Debtor in IA/1377/2023 in…

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