# In the matter of Topknit Processing Mill Private Limited

> NCLT judgment dated 2024-05-10. Citation: TCN-2024-NCLT-01377. The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 May 2024
- **Citation:** TCN-2024-NCLT-01377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topknit-processing-mill-private-limited-50457663

## Summary

### Background

The case involves an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 by Mr.C.Sivasami, the Resolution Applicant, against Mr.A.R.Ramasubramania Raja, the Liquidator, and Small Industries Development Bank of India (SIDBI). The Corporate Insolvency Resolution Process (CIRP) of Topknit Processing Mills Pvt. Ltd. was initiated on 2019-11-21. The Resolution Plan submitted by the Applicant was approved on 2022-06-26, with the condition that the Resolution Applicants bring a sum of Rs.10,11,00,000. The applicant failed to comply with the timeline. The 1st Respondent moved an application IA(IBC)/429(CHE)/2023 and prayed for liquidation of the Corporate Debtor. The Tribunal allowed IA(IBC)/429(CHE)/2023 and ordered liquidation of the Corporate

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Topknit Processing Mills Pvt. Ltd. was initiated on 2019-11-21. Mr. C. Sivasami, the Resolution Applicant, submitted a Resolution Plan that was approved by the Tribunal on 2022-06-26, with the condition that the Resolution Applicants bring a sum of Rs.10,11,00,000. The applicant, along with Mr. Jana Bharathi, had already paid Rs.1,03,25,000, including a security deposit of Rs.46,25,000, into the escrow account. The applicant failed to comply with the timeline committed. The 1st Respondent, Mr.A.R.Ramasubramania Raja, the Liquidator, moved an application IA(IBC)/429(CHE)/2023, praying for liquidation of the Corporate Debtor. On 2023-06-22, the applicant stated that Rs.1 crore would be paid by 2023-06-30, and the

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## Issues and analysis

### Issue 1: Whether the Tribunal has the power to …

**Ratio:** The Hon'ble Apex Court and the Hon'ble Appellate Tribunal have extensively explained the

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**Reasoning:** The Tribunal considered the applicant's prayer to stay its own order. The Tribunal noted

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**Interpretation:** The inherent power of the Tribunal to recall its order is limited and should be

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**Application:** In this case, the Tribunal found that reasonable opportunity was given to the

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## Parties

- **Judges:** JYOTI KUMAR…; RAVICHANDRAN…
- **Appellants:** MR.C. SIV…
- **Respondents:** Topknit Processing…; MR.A.R. RAMASUBRAM…
- **Advocates:** T.K. Bh…; Sankar Varadharaja…; +4 more

## Timeline

- **2019-11-21 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) of Topknit Processing Mills Pvt. Ltd. was…
- **2022-06-26 — Resolution Plan…**: Resolution Plan submitted by the Applicant was approved by the Tribunal with the…

## 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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