# In the matter of Master Weavers Ethinics India Private Limited

> NCLT judgment dated 2023-05-22. Citation: TCN-2023-NCLT-03238. The case involves an application for the liquidation of the Corporate Debtor, Master Weaver…

- **Court:** NCLT
- **Order date:** 22 May 2023
- **Citation:** TCN-2023-NCLT-03238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/master-weavers-ethinics-india-private-limited-511da398

## Summary

### Background

The case involves an application for the liquidation of the Corporate Debtor, Master Weaver Ethnics India Private Limited, due to the absence of a resolution plan despite the calling of applications in Form G. The Committee of Creditors (CoC) has passed a resolution with 100% voting in favor of liquidation. IA 223/2023 was dismissed as not maintainable, with liberty given to the petitioner to seek remedies before the competent forum. IA 1479/2022 involves a petition where the counsel for the petitioner and Respondent No. 1 are present, but no representation for Respondents No. 2, 3, and 4 exists despite sufficient opportunity. The right to file a counter has been forfeited. The matter was passed over for further clarification and posted to 2023-05-23 for orders.

## Facts

India Resurgence ARC Private Limited filed a Company Petition IB/255/2021 under Section 7 of the IBC, 2016, against Master Weaver Ethnics India Private Limited. An application (IA 169/2023) was filed seeking liquidation of the Corporate Debtor because no resolution plan was received despite calling for applications in Form G. The Committee of Creditors (CoC) passed a resolution with 100% voting recommending liquidation. IA 223/2023 was dismissed as not maintainable. In IA 1479/2022, Respondents No. 2, 3, and 4 did not have representation despite sufficient opportunity, and their right to file a counter was forfeited.

## Issues and analysis

### Issue 1: Whether the petition for liquidation of the Corporate Debtor should be allowed given the absence of …

**Ratio:** When no resolution plan is received despite calling for applications, and the Committee

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**Reasoning:** The court reasoned that since no resolution plan was received and the CoC supported

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**Interpretation:** This interprets the IBC to allow for liquidation when resolution efforts fail

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**Application:** The court applied this principle by allowing the liquidation petition and

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** India Resurgence…
- **Respondents:** Master Weaver…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition IB/255/2021 filed…
- **2023-05-22 — Hearing…**: Hearing held on May 22,…

## 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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