# In the matter of Kanva Fashions Limited

> NCLT judgment dated 2025-02-05. Citation: TCN-2025-NCLT-00527. The case pertains to an application (IA No. 11/2024) filed in C.P. (IB) No. 202/BB/2022 under…

- **Court:** NCLT
- **Order date:** 5 Feb 2025
- **Citation:** TCN-2025-NCLT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kanva-fashions-limited-d6cc0098

## Summary

### Background

The case pertains to an application (IA No. 11/2024) filed in C.P. (IB) No. 202/BB/2022 under Section 33 r/w section 60 (5) of the Insolvency and Bankruptcy Code, 2016, seeking an order for the liquidation of the Corporate Debtor, Kanva Fashions Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition filed by Canara Bank under Section 7 of the IBC. An Interim Resolution Professional (IRP) was appointed, who then constituted a Committee of Creditors (CoC). Despite efforts to find a resolution plan, none were approved by the CoC, leading to the decision to liquidate the Corporate Debtor.

## Facts

Canara Bank filed a company petition (C.P (IB) No.202/2022) under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kanva Fashions Limited. The CIRP was admitted on 2023-07-20, and Madhugiri Venkatarayappa Sudarshan was appointed as the Interim Resolution Professional (IRP). The IRP constituted a Committee of Creditors (CoC) and filed a report on 2023-08-18. The first CoC meeting was held on 2023-08-25, where the IRP was appointed as the RP. The RP issued Form G and received expressions of interest from prospective resolution applicants (PRAs), but none submitted a resolution plan by the deadline of 2023-12-15. The CoC approved liquidation in its 10th meeting. IA 291/2024 was filed seeking an

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Kanva Fashions Limited, should be …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

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**Reasoning:** The CoC unanimously rejected all submitted resolution plans, deeming them not

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**Interpretation:** Section 33 of the IBC provides that where no resolution plan is approved, the

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**Application:** Since no resolution plan was approved by the CoC, the conditions under Section

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## Parties

- **Judges:** K. Bi…; RAVICHANDRAN…
- **Appellants:** Madhugiri…
- **Respondents:** Kanva Fashions…

## Timeline

- **2022-01-01 — C.P. (IB) No.…**: Company Petition bearing C.P (IB) No.202/2022 was filed under Section 7 of the Insolvency…
- **2023-07-20 — CIRP Admi…**: Corporate Insolvency Resolution Process…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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