# In the matter of Topknit Processing Mill Private Limited

> NCLT judgment dated 2023-07-26. Citation: TCN-2023-NCLT-02331. The application was filed by Mr. A R Ramasubramania Raja, the Monitoring Professional of M/s.…

- **Court:** NCLT
- **Order date:** 26 Jul 2023
- **Citation:** TCN-2023-NCLT-02331
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topknit-processing-mill-private-limited-7a6870a2

## Summary

### Background

The application was filed by Mr. A R Ramasubramania Raja, the Monitoring Professional of M/s. Topknit Processing Mill Private Limited, seeking liquidation of the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) commenced on 2019-11-21 and a resolution plan was approved by the CoC on 2021-06-29 and by the Tribunal on 2022-06-20. The resolution applicant was to pay Rs.46.25 lakh at the time of submission and the balance of Rs.964.75 lakh within 180 days of the plan's approval. The resolution applicant remitted Rs.103.25 lakh, but failed to remit the balance amount within the stipulated time, contravening Section 74 of the IBC. The Monitoring Committee decided to initiate liquidation as per IBC 2016.

## Facts

The Corporate Insolvency Resolution Process (CIRP) against M/s. Topknit Processing Mill Private Limited commenced on 2019-11-21. A resolution plan was approved by the Committee of Creditors (CoC) on 2021-06-29 and subsequently by the National Company Law Tribunal (NCLT) on 2022-06-20. As per the approved resolution plan, the respondents (Resolution Applicants) were required to pay Rs.46.25 lakh at the time of submission of the plan and the balance amount of Rs.964.75 lakh within 180 days from the date of approval. The Resolution Applicant paid an initial amount of Rs.103.25 lakh. However, the Resolution Applicant failed to remit the balance amount within the stipulated timeframe, contravening Section 74 of the Insolvency and Bankruptcy Code (IBC). The 10th Monitoring

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## Issues and analysis

### Issue 1: Whether the successful Resolution Applicants …

**Ratio:** Section 33(3) & (4) of the Insolvency & Bankruptcy Code, 2016, provides that if a

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**Reasoning:** The Tribunal found that the successful Resolution Applicants failed to adhere to the

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**Interpretation:** Section 33(3) and (4) of the IBC clearly outlines the consequences of

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**Application:** In this case, the Resolution Applicants' failure to make timely payments as per

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Appellants:** A.R.Ramasubramania…
- **Respondents:** Topknit Processing…; C. Siva…

## Timeline

- **2019-11-21 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2021-06-29 — CoC Appr…**: Resolution plan approved by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(3) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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