# In the matter of Fashion Influence Clothing (P) Limited

> NCLT judgment dated 2024-11-28. Citation: TCN-2024-NCLT-00145. Smartpaddle Technology Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 28 Nov 2024
- **Citation:** TCN-2024-NCLT-00145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fashion-influence-clothing-p-limited-057389e2

## Summary

### Background

Smartpaddle Technology Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against Fashion Influence Clothing India Pvt Ltd, which was admitted on 2023-11-22. The Applicant, Mr. Mutharasapuram Ganesan Chandrasekaran, was appointed as Interim Resolution Professional and later as Resolution Professional. Due to lack of cooperation from the Suspended Board of Directors (SBoD), the Applicant could not perform his duties effectively. The books of accounts revealed potential fraudulent activities by the suspended directors. The Applicant filed applications to direct the respondents to produce documents, but they failed to do so. The CoC resolved to initiate liquidation proceedings against the Corporate Debtor as there were no prospective resolution applicants.

## Facts

Smartpaddle Technology Pvt Ltd initiated CIRP against Fashion Influence Clothing India Pvt Ltd, admitted on 2023-11-22. Mr. Mutharasapuram Ganesan Chandrasekaran was appointed as Interim Resolution Professional and later as Resolution Professional. The SBoD failed to cooperate, hindering the CIRP. Books of accounts suggested fraudulent activities by the suspended directors. An application to direct document production was disposed of on 2024-03-12, but the respondents failed to comply, leading to a contempt petition. An application under Section 66 of IBC was filed against the SBoD. Form G was published on 2024-01-21, but no resolution applicants emerged. The CoC resolved to initiate liquidation on 2024-05-03. An application for early liquidation was disposed of on

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016 allows for the initiation of

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**Reasoning:** The court noted that no resolution plan was received before the expiry of the CIRP period

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**Interpretation:** Section 33(1)(a) mandates liquidation if no resolution plan is approved within

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**Application:** Since no resolution plan was received and the CIRP period expired, the court

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Mutharasapuram…
- **Respondents:** Fashion Influence…; Smartpaddle…
- **Advocates:** Padma P…; Ananda Go…; +2 more

## Timeline

- **2023-11-22 — CIRP Admi…**: Corporate Insolvency Resolution Process (CIRP) initiated against Fashion Influence…
- **2023-11-22 — Appointment…**: Mr. Mutharasapuram Ganesan Chandrasekaran…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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