# In the matter of Fashion Equation Pvt. Ltd.

> NCLT judgment dated 2023-07-24. Citation: TCN-2023-NCLT-02369. The case pertains to an application filed by the Resolution Professional (RP) of Fashion…

- **Court:** NCLT
- **Order date:** 24 Jul 2023
- **Citation:** TCN-2023-NCLT-02369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fashion-equation-pvt-ltd-5c14f01e

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Fashion Equation Pvt. Ltd. under Section 33 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking liquidation of the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated on 28.04.2022. The RP was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) decided not to proceed with the issuance of Form-G (Expression of Interest) and instead recommended liquidation due to the Corporate Debtor having no assets and not being in operation for several years.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Fashion Equation Pvt. Ltd. was initiated on 2022-04-28. The Resolution Professional (RP) was appointed as the Interim Resolution Professional (IRP). The first meeting of the Committee of Creditors (CoC) was held on 2022-05-30, where the asset position of the Corporate Debtor was discussed. The Corporate Debtor was reported to have no assets and certain receivables as of 2021-03-31. The RP did not appoint a valuer initially due to the lack of assets, but later the applicant appointed a financial valuer. In the third CoC meeting held on 2022-07-18, the CoC decided not to proceed with the issuance of Form-G (Expression of Interest) and instead recommended liquidation. The CoC determined that the Corporate Debtor had no

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Fashion Equation Pvt. Ltd., should be liquidated under Section 33 of …

**Ratio:** Section 33(2) of the IBC, 2016, allows the Adjudicating Authority to pass a liquidation

…

**Reasoning:** The CoC, with a voting share of 97.75%, decided to liquidate the Corporate Debtor due to

…

**Interpretation:** Section 33(2) provides a mechanism for the CoC to decide on liquidation during

…

**Application:** The CoC's decision to liquidate the Corporate Debtor aligns with Section 33(2)

…

## Parties

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

## Timeline

- **2022-04-28 — CIRP Init…**: The Corporate Insolvency Resolution Process (CIRP) of Fashion Equation Pvt. Ltd. was…
- **2022-04-28 — Appointment…**: The Applicant was appointed as the Interim Resolution Professional (IRP) of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

---

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/fashion-equation-pvt-ltd-5c14f01e