# In the matter of Kumar's Cotex Limited

> NCLT judgment dated 2024-04-24. Citation: TCN-2024-NCLT-01608. The case involves the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation…

- **Court:** NCLT
- **Order date:** 24 Apr 2024
- **Citation:** TCN-2024-NCLT-01608
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kumars-cotex-limited-dbccd50f

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Kumar's Cotex Limited. The CIRP was initiated under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016, and admitted on 05.05.2022. After the Committee of Creditors (CoC) rejected resolution plans, an order for liquidation was passed on 17.02.2023. Mr. Raghu Babu Gunturu was appointed as the liquidator. The liquidator then proceeded to sell the Corporate Debtor as a going concern. Nuland Impex Private Limited emerged as the successful bidder. The liquidator sought approval for the closure of the liquidation process and the sale of the corporate debtor. Nuland Impex also filed an application seeking certain waivers and immunities from past liabilities to ensure

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Kumar's Cotex Limited was initiated under Section 10 of the IBC and admitted on 05.05.2022. The Committee of Creditors (CoC) rejected resolution plans and approved liquidation on 21.01.2023. The liquidation order was passed on 17.02.2023, and Mr. Raghu Babu Gunturu was appointed as the liquidator. The liquidator prepared a list of stakeholders, filed an asset memorandum, and constituted a Stakeholders Consultation Committee (SCC). E-auction sale notices were issued, and Nuland Impex Private Limited emerged as the successful bidder with a bid of Rs. 11,02,41,000/-. The liquidator distributed the proceeds as per Section 53 of the IBC. The liquidation period commenced on 17.02.2023 and was completed by 17.02.2024.

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## Issues and analysis

### Issue 1: Whether the closure of the Liquidation Process of the Corporate Debtor should be approved under …

**Ratio:** Regulation 45(3)(a) of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The court noted that the liquidator had completed the liquidation process, sold the

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**Interpretation:** Regulation 45(3)(a) provides a mechanism for closing the liquidation process

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**Application:** The court applied Regulation 45(3)(a) to the facts of the case, noting that the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Nuland Impex…
- **Respondents:** Kumar's Cotex…; Raghu Babu…

## Timeline

- **2022-05-05 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated under Section 10 of the IBC and…
- **2022-08-23 — Appointment…**: Mr. Raghu Babu Gunturu appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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