# Committee of Creditors v. Greenfield Textiles Pvt. Ltd.

> Committee of Creditors v. Greenfield Textiles Pvt. Ltd. — detailed IBC case summary, facts, issues, and ratio decidendi.

- **Court:** NCLT
- **Order date:** 10 Sept 2024
- **Citation:** IBC-2024-NCLT-000003
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/committee-of-creditors-v-greenfield-textiles-pvt-ltd-13990

## Summary

### Background

Greenfield Textiles Pvt. Ltd. underwent CIRP following admission of a financial creditor application in late 2023. The company operated an export-oriented garment and fabric unit in Noida with established buyers in the EU and Middle East. After competitive bidding, a strategic investor emerged as successful resolution applicant with a plan proposing Rs. 45 crore equity infusion and restructuring of legacy term debt over seven years.

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## Facts

Greenfield Textiles employed approximately 1,200 workers across cutting, stitching, and finishing lines with Oeko-Tex and GOTS certifications enabling premium export contracts. Financial stress arose from cancellation of orders during 2020-21 and subsequent working capital crunch.

CIRP costs aggregated Rs. 1.8 crore including RP fees, legal expenses, and plant security. Information memorandum highlighted unencumbered export receivables and partially completed capex for automated cutting lines.

The successful resolution applicant committed to retain 85% workforce for twelve months, modernize ERP, and infuse working capital through buyer-backed letters of credit. Dissenting creditors argued liquidation value of machinery exceeded plan payouts by 12% on forced sale basis.

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## Issues and analysis

### Issue 1: Whether the resolution plan satisfies mandatory…

**Ratio:** Section 30(2) sets non-negotiable floors for stakeholder treatment; plans failing any…

**Reasoning:** Plan addressed CIRP costs, employee dues, operational creditor minimums, and provided…

**Interpretation:** Mandatory payments must be unconditional and not deferred beyond plan effective…

**Application:** Statutory minima held satisfied; plan eligible for approval subject to fairness…

## Parties

- **Judges:** Hon'ble Shri Ram…; Venugop…
- **Appellants:** HDFC Bank…
- **Respondents:** Greenfield…
- **Other parties:** Mr. Rajesh Kumar…; PowerGrid…
- **Advocates:** Kapil S…; Menaka Gur…

## Timeline

- **14 November 2023 — CIRP admi…**: NCLT initiates CIRP against…
- **20 January 2024 — EoI proc…**: Resolution applicants conduct…

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-new-delhi/committee-of-creditors-v-greenfield-textiles-pvt-ltd-13990