# In the matter of Sri Paranthaman Textiles Private Limited

> NCLT judgment dated 2025-02-05. Citation: TCN-2025-NCLT-00524. The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Feb 2025
- **Citation:** TCN-2025-NCLT-00524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-paranthaman-textiles-private-limited-38da3d85

## Summary

### Background

The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code, 2016, by S. Kangayan, the Resolution Professional (RP) of Sri Paranthaman Textiles Private Limited, the Corporate Debtor (CD). The RP sought the initiation of liquidation for the CD. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on 2023-02-13. The Committee of Creditors (CoC) found no prospects in continuing with the CIRP and directed the RP to file an application for liquidation. An application u/s 33 of IBC, 2016 was filed by the applicant. The Hon'ble High Court of Madras had initially granted a stay for CIRP against the Corporate Debtor, which was later disposed of, resuming the CIRP. Certain proceedings were pending before

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## Facts

Sri Paranthaman Textiles Private Limited was admitted into Corporate Insolvency Resolution Process (CIRP) on 2023-02-13. M. Raamaswamy was appointed as the Interim Resolution Professional (IRP). Public announcement was issued on 2023-02-22. The Committee of Creditors (CoC) was constituted on 2023-03-13. The first CoC meeting was held on 2023-03-18, where the continuation of IRP as Resolution Professional (RP) was approved. On 2023-03-23, the second CoC meeting resolved to replace the RP, and S. Kangayan was appointed as the new RP. The fourth CoC meeting on 2023-07-28 recommended the liquidation of the Corporate Debtor without going through the Expression of Interest (EoI) process. The liquidation application was filed on 2023-08-10. The CoC found no prospects in

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order the liquidation of the Corporate Debtor, Sri …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code (IBC) stipulates that where the

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**Reasoning:** The CoC, having found no prospects in continuing with the CIRP, approved the liquidation

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**Interpretation:** Section 33(2) provides a clear mandate for the Adjudicating Authority to order

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**Application:** In this case, the CoC approved the liquidation of Sri Paranthaman Textiles

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** S. Kang…
- **Respondents:** Paranthaman…; M/s.Ram Raghav,…

## Timeline

- **2023-02-13 — Commencement…**: Sri Paranthaman Textiles Private Limited was admitted into Corporate Insolvency…
- **2023-02-22 — Public Annou…**: Public announcement was issued in Financial…

## 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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