# In the matter of Nihar Cotspin Private Limited I.A. 45 of 2022 in CP (IB) - 3708-MB-2019

> NCLT judgment dated 2022-03-25. Citation: TCN-2022-NCLT-03526. The case involves an application (I.A. No. 45/2022) filed by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 25 Mar 2022
- **Citation:** TCN-2022-NCLT-03526
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nihar-cotspin-private-limited-ia-45-of-2022-in-cp-ib-3708-mb-2019-5c1b27e6

## Summary

### Background

The case involves an application (I.A. No. 45/2022) filed by the Resolution Professional, Mr. Dharit K. Shah, seeking liquidation of Nihar Cotspin Private Limited (the Corporate Debtor) under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Nihar Cotspin Private Limited following the admission of a petition under Section 7 of the Code filed by Corporation Bank on 13.03.2020. Mr. Dharit Kishorbhai Shah was appointed as the Interim Resolution Professional (IRP). Public announcements were made inviting claims from creditors. The Committee of Creditors (CoC) appointed the Applicant as the Resolution Professional. An advertisement inviting Expression of Interest (EoI) was published, but

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## Facts

On 13.03.2020, the NCLT admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Corporation Bank, initiating the Corporate Insolvency Resolution Process (CIRP) against Nihar Cotspin Private Limited. Mr. Dharit Kishorbhai Shah was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 27.06.2020, inviting claims from the creditors of Nihar Cotspin Private Limited. On 24.07.2020, the Committee of Creditors (CoC) appointed the Applicant as the Resolution Professional with 100% voting approval. An advertisement inviting Expression of Interest (EoI) was published on 12.09.2020 and 17.10.2020. Only one Resolution Plan was received from "Paras Dyeing & Printing Mills". On 02.10.2021, in the 7th

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Nihar Cotspin Private Limited, …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The Committee of Creditors (CoC) in its 7th meeting, with 100% majority, decided to

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**Interpretation:** Section 33 provides the legal basis for initiating liquidation when the CIRP

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**Application:** The CoC's decision to liquidate Nihar Cotspin Private Limited, based on the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Dharit Kishorbhai…
- **Respondents:** Nihar Cotspin…

## Timeline

- **2020-03-13 — Admission of…**: The Tribunal admitted the petition under Section 7 of the Code filed by Corporation Bank,…
- **2020-06-27 — Public Annou…**: A public announcement was made inviting claims…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33 — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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