# In the matter of Sri Chandra Moulishvar Spinning Mills Private Limited

> NCLT judgment dated 2023-10-13. Citation: TCN-2023-NCLT-01241. The case pertains to the liquidation of M/s. Sri Chandra Moulishvar Spinning Mills Private…

- **Court:** NCLT
- **Order date:** 13 Oct 2023
- **Citation:** TCN-2023-NCLT-01241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-chandra-moulishvar-spinning-mills-private-limited-9fcbf042

## Summary

### Background

The case pertains to the liquidation of M/s. Sri Chandra Moulishvar Spinning Mills Private Limited, initiated on 07.06.2018, with the liquidation order issued on 04.02.2019. The liquidator made a public announcement on 13.02.2019, setting 06.03.2019 as the last date for claim submissions. The liquidator received 24 claims. Canara Bank, the sole secured creditor, realized the assets. The liquidator filed a preliminary report within 75 days of the liquidation commencement date, 20.04.2019. Valuers were appointed on 17.10.2018, but no valuation occurred due to asset unavailability. Canara Bank did not relinquish its security interest and obtained directions under Section 52 of IBC, 2016. The liquidation process was completed within the prescribed timelines. The Tribunal

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## Facts

M/s. Sri Chandra Moulishvar Spinning Mills Private Limited ('Corporate Debtor') underwent Corporate Insolvency Resolution Process (CIRP) initiated on 07.06.2018. Liquidation was ordered on 04.02.2019. Muthuiah Thevar Rajapandian was appointed as the liquidator. A public announcement was made on 13.02.2019, with a claim submission deadline of 06.03.2019. The liquidator received 24 claims. Canara Bank, the sole secured creditor, realized assets under SARFAESI Act, 2002. A preliminary report was filed on 20.04.2019. Valuers were appointed on 17.10.2018, but no valuation was carried out. Canara Bank did not relinquish its security interest and obtained directions under Section 52 of IBC, 2016. The Tribunal excluded a period due to COVID-19, extending liquidation to

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## Issues and analysis

### Issue 1: Whether the assets of the corporate debtor have been completely liquidated, justifying an …

**Ratio:** Section 54 of the IBC, 2016, stipulates that where the assets of the corporate debtor

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**Reasoning:** The Tribunal observed that the total assets of the Corporate Debtor had been completely

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**Interpretation:** Section 54 of the IBC provides the legal basis for dissolving a corporate

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**Application:** Given that the assets of M/s. Sri Chandra Moulishvar Spinning Mills Private

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## Parties

- **Judges:** Shri. Sanji…; SHRI. RAVICHANDRAN…
- **Appellants:** MUTHUIAH THEVAR…
- **Respondents:** CHANDRA MOULISHVAR…

## Timeline

- **2018-06-07 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2019-02-04 — Liquidation…**: Liquidation of the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 52 — Secured creditor in liquidation proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-52)

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