# In the matter of Floram Shoes (India) Private Limted

> NCLT judgment dated 2023-08-08. Citation: TCN-2023-NCLT-02132. The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s. Floram Shoes…

- **Court:** NCLT
- **Order date:** 8 Aug 2023
- **Citation:** TCN-2023-NCLT-02132
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/floram-shoes-india-private-limted-1dc3d17a

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s. Floram Shoes (India) Private Limited. CIRP was initiated following an application under Section 9 of the IBC by an Operational Creditor, Sri. G. Pandian. An order was passed on 01.08.2019 for the commencement of CIRP. Sri. Amier Hamsa Ali Abbas Rowther was appointed as the Interim Resolution Professional and later as the Liquidator. The company was ordered for liquidation on 27.01.2021. An e-auction was conducted, and BBK Leathers Private Limited emerged as the successful bidder. However, during the registration process, it was discovered that there were 325 attachments on the Corporate Debtor's assets prior to the insolvency commencement date, ordered by the Principal Labour Court, Vellore.

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Floram Shoes (India) Private Limited based on an application under Section 9 of the IBC. The Tribunal ordered the commencement of CIRP on 01.08.2019. Sri. Amier Hamsa Ali Abbas Rowther was appointed as the Interim Resolution Professional and later as the Liquidator. The company was ordered for liquidation on 27.01.2021. An e-auction was conducted, and BBK Leathers Private Limited emerged as the successful bidder with a bid of Rs. 8.56 Crores. During the registration process, it was discovered that there were 325 attachments on the Corporate Debtor's assets prior to the insolvency commencement date, ordered by the Principal Labour Court, Vellore. These attachments were related to claims by

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## Issues and analysis

### Issue 1: Whether the attachments ordered by the Principal Labour Court, Vellore, on the assets of the …

**Ratio:** Section 32A of the IBC provides that the liability of the Corporate Debtor for an offence

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**Reasoning:** The court reasoned that since the attachments were prior to the commencement of CIRP and

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**Interpretation:** Section 32A of the IBC is interpreted to protect the assets of the Corporate

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**Application:** In this case, the attachments were ordered by the Labour Court prior to the

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** Sri. Amier Hamsa…
- **Respondents:** FLORAM SHOES…; THE SUB REG…
- **Advocates:** Jayanthi…; J. Sivara…; +5 more

## Timeline

- **2019-08-01 — Commencement…**: Tribunal ordered the commencement of the Corporate Insolvency Resolution Process (CIRP)…
- **2019-08-07 — Public Annou…**: Amier Hamsa Ali Abbas Rowther, the Interim Resolution Professional, made a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 238 — Provisions of this Code to override other laws](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-238)

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