# In the matter of  Master Weaver Ethnics India Private Limited

> NCLT judgment dated 2024-05-02. Citation: TCN-2024-NCLT-01473. The case involves a Company Petition IB/255/2021 filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 2 May 2024
- **Citation:** TCN-2024-NCLT-01473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/master-weaver-ethnics-india-private-limited-50eaa981

## Summary

### Background

The case involves a Company Petition IB/255/2021 filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Master Weaver Ethnics India Private Limited, the Corporate Debtor, by India Resurgence ARC Private Limited, the Financial Creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated, and subsequently, due to the lack of a viable resolution plan, the Committee of Creditors (CoC) resolved to liquidate the company. An application was filed by the Liquidator for the dissolution of the Corporate Debtor, stating that there are no valuable assets remaining. Several IAs were filed, including one by the ex-management challenging the CIRP admission and seeking document amendments, which were dismissed.

## Facts

India Resurgence ARC Private Limited initiated CIRP against Master Weaver Ethnics India Private Limited under Section 7 of IBC, 2016. The petition was admitted on 2022-04-04. Due to the absence of a resolution plan, the CoC voted for liquidation. Mr. Malireddy Ramana Reddy was appointed as the Liquidator. The Liquidator issued public announcements and formed a Stakeholders Consultation Committee. The ex-management of the Corporate Debtor, Udata Venkateswara Rao, filed multiple IAs challenging the CIRP process, including IA 868/2023 and IA 1523/2023, seeking documents and amendments to written statements. The Liquidator submitted a final report as per Regulation 45 of IBBI Liquidation Process Regulations, 2016, and applied for the dissolution of the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Corporate …

**Ratio:** Section 54 of the IBC, 2016, and Regulation 45 of the IBBI (Liquidation Process)

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**Reasoning:** The court reasoned that the assets of the Corporate Debtor had been completely

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**Interpretation:** Section 54 of the IBC allows for the dissolution of a corporate debtor once its

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**Application:** The court applied Section 54 of the IBC and Regulation 45 of the IBBI

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Udata Venkateswara…
- **Respondents:** Master Weaver…; M/s. India…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition IB/255/2021 filed against…
- **2022-04-04 — CIRP Admi…**: Petition admitted, initiating Corporate…

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