# In the matter of S.K.S Textiles Ltd.

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00022. The case pertains to an Interlocutory Application filed by the Resolution Professional, Mr.…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sks-textiles-ltd-13406886

## Summary

### Background

The case pertains to an Interlocutory Application filed by the Resolution Professional, Mr. Anurag Jain, under Section 33(2) r/w Section 60(5) of the Insolvency and Bankruptcy Code, 2016, and Rule 11 of the National Company Law Tribunal Rules, 2016, for initiating the Liquidation Process against S K S Textiles Limited (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) was initiated by the Bench vide order dated 28.09.2022 upon admission of a Company Petition bearing CP (IB) No. 799 of 2021, filed by DBS Bank India Limited, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The applicant was appointed as the Interim Resolution Professional (IRP) of the Corporate Debtor. The applicant issued a public announcement in two newspapers on

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## Facts

DBS Bank India Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP) against S K S Textiles Limited. The CIRP was initiated on 28.09.2022. Mr. Anurag Jain was appointed as the Interim Resolution Professional (IRP). A public announcement was made on 01.10.2022, inviting claims from creditors. The first meeting of the Committee of Creditors (CoC) was held on 28.10.2022. The CoC approved resolutions in their first meeting and authorized the applicant to appoint 'Bagchi & Gupta', Chartered Accountants, to conduct the Transaction Audit for the past Four Years. An invitation for Expression of Interest (EoI) was issued on 19.11.2022. The last date for receipt of Eols was

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## Issues and analysis

### Issue 1: Whether the Interlocutory Application filed for seeking Liquidation of the Corporate Debtor should …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016, provides for liquidation of the

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**Reasoning:** The Adjudicating Authority considered that no Resolution Plan could be brought forth and

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**Interpretation:** Section 33 provides the mechanism for liquidation when CIRP fails. The absence

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**Application:** Since no resolution plan was approved, the application for liquidation was

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## Parties

- **Judges:** SANJIV…; KISHORE VEMULAPALL…
- **Appellants:** DBS Bank In…
- **Respondents:** S K S Textiles…; S.K.S Texti…

## Timeline

- **2022-09-28 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor was initiated by…
- **2022-10-01 — Public Annou…**: Applicant issued a Public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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