In the matter of Sakthi Ganesh Textiles Private Limited

IN THE NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH (COURT– I) CHENNAI ATTENDANCE CUM ORDER SHEET OF THE HEARING HELD ON 12.06.2025 THROUGH VIDEO CONFERENCE PRESENT: HON'BLE SHRI SANJIV JAIN, MEMBER (JUDICIAL) HON'BLE SHRI VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) IN THE MATTER OF : Babitha Sancheti Vs Sakthi Ganesh Textiles Pvt Ltd MAIN PETITION NUMBER : CP(IB)/213(CHE)2023 (IA/MA) APPLICATION NUMBERS IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025; IA(IBC)/355(CHE)/2025 ORDER IA(IBC)(LIQ)/11/2025 IA(IBC)/354(CHE)/2025 IA(IBC)/355(CHE)/2025 Present: Ms. Sahaya Sukuna, Ld. Counsel for RP. Mr. Aravinda Samy, Ld. Counsel for Sales Tax Department Vide common Order pronounced in Open Court, the Applications are disposed of. The liquidation is ordered. M/s. SPP Insolvency Professionals LLP, IPE is appointed as the Liquidator.

-sd- -sd- [VENKATARAMAN SUBRAMANIAM] [SANJIV JAIN] MEMBER (TECHNICAL) MEMBER (JUDICIAL) MS Date: 12.06.2025

IN THE NATIONAL COMPANY LAW TRIBUNAL, DIVISION BENCH – I, CHENNAI

IA(IBC)(LIQ)/11/2025 IN CP(IB)/213(CHE)/2023 (filed under Section 33(1)(a) & 34(1) of Insolvency and Bankruptcy Code, 2016 R/w Rule 11 of NCLT Rules, 2016)

In the matter of M/s. Sakthi Ganesh Textiles Private Limited.

1. Mr. CA. Mahalingam Suresh Kumar RP of M/s. Sakthi Ganesh Textiles Pvt Ltd. 2nd Floor, CODISSIA Building, G.D. Naidu Towers, Huzur Road, Coimbatore, Tamil Nadu – 641 018. …Applicant Present: For Applicant : A.G. Sathyanarayana, Advocate

Along with IA(IBC)/354(CHE)/2025 IN CP(IB)/213(CHE)/2023 (filed under Section 60(5) of IBC, 2016) In the matter of M/s. Sakthi Ganesh Textiles Private Limited.

1. Government of Tamil Nadu, Commercial Taxes Department, Represented by Jurisdictional Assistant Commissioner (ST) Gobichettipalayam Assessment Circle, 144/1, Polavakali palayam, Gobichettipalayam Erode (DT) 638 476 Email: ac.gobichettipalayam@gmail.com

… Applicant -Vs-

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

Mr. S. Kangayan, Interim Resolution Professional of M/s. Sakthi Ganesh Textiles Pvt Ltd., IBBI/IPA-002/IP-N00866/2019*2020/12770, Plot No. 81, 3rd Street, Phase -1, Dollars Colony, Virugampakkam, Chennai – 600 126

… Respondent

Present: ForApplicant :G. Dinesh, Advocate Aravindhasamy, Advocate For Respondents :A.G. Sathyanarayana, Advocate

Along with IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 (filed under Rule 11 of NCLT Rules, 2016) In the matter of M/s. Sakthi Ganesh Textiles Private Limited.

1. Government of Tamil Nadu, Commercial Taxes Department, Represented by Jurisdictional Assistant Commissioner (ST) Gobichettipalayam Assessment Circle, 144/1, Polavakali palayam, Gobichettipalayam Erode (DT) 638 476 Email: ac.gobichettipalayam@gmail.com

… Applicant -Vs-

Mr. S. Kangayan, Interim Resolution Professional of M/s. Sakthi Ganesh Textiles Pvt Ltd., IBBI/IPA-002/IP-N00866/2019*2020/12770,

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

Plot No. 81, 3rd Street, Phase -1, Dollars Colony, Virugampakkam, Chennai – 600 126

… Respondent

Present: ForApplicant :G. Dinesh, Advocate Aravindhasamy, Advocate For Respondents :A.G. Sathyanarayana, Advocate

CORAM:

SANJIV JAIN, MEMBER (JUDICIAL) VENKATARAMAN SUBRAMANIAM, MEMBER (TECHNICAL) Order Pronounced on, 2025

(Heard through Hybrid Mode)

1. An application IA(IBC)(LIQ)/11/2025 IN CP(IB)/213(CHE)/2023 has been filed by Shri. Mahalingam Suresh Kumar, the Resolution

Professional seeking the following reliefs.

a. That this AA may be pleased to pass an order for Liquidation of the Corporate Debtor namelyl M/s. Sakthi Ganesh Textiles Pvt Ltd; b. That this AA may be pleased to pass an order appointing M/s. SPP Insolvency Professionals LLP, IPE (IBBI/IPE-0143/IPA-1/2022-23/50033) as Liquidator for administering the Liquidation Process of the Corporate Debtor;

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited c. To pass such orders or further orders which this Tribunal may deem to be fit and proper in the interest of justice.

2. An application IA(IBC)/354(CHE)/2025 has been filed by Commercial

Taxes Department, Government of Tamil Nadu seeking the following relief.

a. To set aside the Order dated 17.12.2024 passed by the Respondent and direct the Respondent to receive and admit the claim of the Applicant herein and thus render justice.

3. An application IA(IBC)/355(CHE)/2025 has been filed by Commercial

Taxes Department, Government of Tamil Nadu seeking the following relief.

a. To condone the delay of 63 days in filing the Interlocutory Application challenging the rejection of the claim and pass such other orders as may be deemed fit and proper in the interest of justice.

4. The facts which are relevant for the disposal of the applications are that on an application filed by an Operational Creditor Ms. Babitha Sancheti,

Proprietor of M/s. Pioneer Enterprises under Section 9 of IBC, the Corporate Debtor Sakthi Ganesh Textiles Pvt Ltd was admitted into

CIRP vide an order dated 31.07.2025 in CP(IB)/213(CHE)/2023. Mr. S.

Kangayan was appointed as IRP. The IRP made a public announcement and called for the claims by making publication on 01.08.2024 in “The IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

Financial Express”and “Makkal Kural”, Tamil edition and “Samyuktha

Karnataka”, Kannada Edition. The last date for submission of claims was fixed as 13.08.2024. Purusuant thereto, the RP received the claims, constituted the CoC and assigned the voting rights. He filed the list of creditors and report with the Tribunal. He called the 1st CoC meeting on 04.09.2024 comprising of three CoC members on the basis of their admitted claims as tabulated below.

2. In the 2nd CoC held on 03.10.2024, the IRP placed an agenda about issuance of expression of interest with Form-G, however, CoC deferred the same. He again placed the agenda for publication of Form-G in the 4th CoC meeting held on 05.12.2024 which was approved. He published the Form-G on 08.12.2024. One PRA submitted the plan. In the IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited meantime, CoC took a decision to replace the IRP and accordingly on IA/2201/2024 was filed with the Tribunal which was allowed vide an order dated 22.01.2025. The Applicant M. Suresh Kumar was appointed as the RP. He convened the 5th CoC meeting on 03.02.2025 and placed an agenda for approval of publication of amended Form-G which was approved by the CoC. He published the amended Form-G on 06.02.2025 and received expression of interest from 7 PRAs. He fixed the last date for submission of resolution plan as 05.04.2025.

3. The Applicant / RP briefed about the activities carried out by him during the CIRP process and informed the CoC that 180 days timeline was expiring on 26.01.2025. Since the erstwhile IRP had already filed an application IA/463/2025 for extension of CIRP period, the RP did not file a new application. The application came up for hearing on 25.03.2025 whereby it was noted by the Tribunal that pursuant to Form-G issued and expression of interest submitted by one PRA, the Axis Bank with 68.97% voting rejected the RFRP. RP was given liberty to withdraw the application and file afresh. The Tribunal also directed the RP to conduct fresh CoC.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

4. The RP convened the 6th CoC meeting on 27.03.2025 where the CoC passed an unanimous resolution to file an application for extension of CIRP period for 90 days. The RP filed an application

IA(IBC)/618(CHE)/2025 for the extension which was allowed vide an order dated 21.04.2025 extending the CIRP period till 27.04.2025. It is stated that though the 7 PRAs submitted their expression of interest but did not file any resolution plan despite extensive follow up. The RP in the 7th CoC meeting held on 07.04.2025 informed the CoC about the same and the CoC after discussions, exercising its commercial wisdom, passed a resolution with 100% voting recommending for liquidation of the Corporate Debtor. It also discussed about the liquidation cost,

Liquidator fee and the appointment of the Liquidator. It recommended the name of M/s. SPP Insolvency Professionals LLP, IPE as the Liquidator authorizing the Applicant / RP to file an application for the liquidation of the Corporate Debtor under Section 33(2) of IBC. The RP thus filed this application along with the compliance certificate in Form-

H under Regulation 39(4) of IBBI Regulations.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

5. The Applicant / RP has placed the Copy of the order dt. 31.07.2024;

Copy of the Public Announcement dt. 01.08.2024; 1st COC Meeting

Minutes dt: 04th September, 2024; 02nd COC Meeting Minutes dt: 3rd

October, 2024; 03rd COC Meeting Minutes dt: 29th November, 2024;

04th COC Meeting Minutes dt: 5th December, 2024; Copy of the Ld.

AA order dt.22.01.2025; Copy of the 5th COC Meeting Minutes dt:

03.02.2025; Copy of the Form G dt: 05th February, 2025; Copy of the Minutes of 06th CoC Meeting dt: 27.03.2025; Copy of the CIRP

Extension order dt. 21.04.2025; Copy of the Minutes of 07th CoC

Meeting dt:07.04.2025; Form-AA with AFA; and Form H as Annexure 1-

14.

6. We have heard Ld. Counsel for the Applicant / RP and perused the documents including the minutes of 7th CoC held on 07.04.2025.

7. A perusal of the minutes reveals that the RP in the meeting held on 07.04.2025 had given a brief overview of the Corporate Debtor's plants and units, outlining the reasons cited by the PRAs for their withdrawal from the resolution plan. It was informed that the first unit located in Avinashi is currently non-operational and contains only four non-

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited operational machines. It would require installation of new machinery to make functional. In the present condition, the unit is more suitable for use as a warehouse for lease. The 2nd unit has a small section leased for a sizing operation. The equipment within the unit is non-functional.

The weaving segment consists of structural remnants of 2-3 functional machines with no current operational capacity. He informed that the withdrawals made by the PRAs show their lack of interest in acquiring the Corporate Debtor. He informed that in the absence of any active resolution plan, there is no logical basis to seek extension. He also emphasised that outright piecemeal sales of assets are not feasible under the CIRP and further CIRP period has elapsed. Various options were explored by the CoC members and finally the CoC resolved by 100% voting for the liquidation of the Corporate Debtor. The CoC also approved the name of M/s. SPP Insolvency Professionals LLP as the Liquidator to manage the liquidation process for the table of fees as prescribed in the Liquidation Process Regulations. After discussions, it was resolved that the estimated liquidation expenses would be around 30 Lakhs, CoC would contribute an initial corpus of Rs. 10 Lakh for meeting the liquidation expenses and further contribute additional

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited corpus in due course depending upon the actual flow of expenditure during the liquidation process. The CoC also recommended for realization of assets in any of the available options under the Code including compromise arrangement in compliance with the provisions of Section 230 of the Companies Act, 2013, IBC, Code and the Regulations. The extract of the minutes is placed as under.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

8. Having considered the minutes, Form-H submitted by the Applicant /

RP and the report, we are of the view that there is no possibility of revival of the Corporate Debtor during the CIRP process. No PRA has come forward to submit the resolution plan. The CIRP period has already expired. The CoC in its commercial wisdom has thus passed a resolution with 100% voting to go for the liquidation of the Corporate

Debtor. It has also recommended the name of the Liquidator who has given consent by giving Form AFA. His registration is also valid.

9. For the aforesaid reasons, we allow the application and appoint M/s.

SPP Insolvency Professionals LLP, IPE as the Liquidator having IBBI registration No. IBBI/IPE-0143/IPA-1/2022-23/50033 (email ID:

msureshkumar@icai.org) whose AFA is valid upto 31.12.2025 of the Corporate Debtor M/s. Sakthi Ganesh Textiles Private Limited to carry out the liquidation process subject to the following terms / directions.

a) The Liquidator shall strictly act in accordance with the provisions of IBC, 2016 and the attendant Rules and Regulations including Insolvency and Bankruptcy (Liquidation Process) Regulations, 2017 as amended upto date enjoined upon him.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited b) The Liquidator shall issue the public announcement in leading newspapers having wide circulation, one in English “Business Standard” and another in vernacular “Dina Thanthi” that the Corporate Debtor is in liquidation.

c) In relation to officers/ employees and workers of the Corporate Debtor, taking into consideration Section 33(7) of IBC, 2016, this order shall be deemed to be a notice of discharge.

d) The Liquidator shall investigate the financial affairs of the Corporate Debtor particularly, in relation to preferential transactions/ undervalued transactions and such other like transactions including fraudulent preferences and file suitable application before this Adjudicating Authority.

e) The Liquidator is directed to proceed with the process of liquidation in a manner laid down in Chapter III of Part II of the Insolvency and Bankruptcy Code, 2016. The Liquidator is directed to first explore resolution of assets in any of the available options under the Code including compromise arrangement in compliance with the provisions of Section 230 of the Companies Act, 2013, IBC, Code and the Regulations.

f) The Liquidator is directed to investigate the financial affairs of the Corporate Debtor in terms of the provisions of Section – 35(1) of IBC, 2016 read with relevant rules and regulations and file its response for disposal of any pending Company Applications during the process of liquidation.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited g) The Liquidator shall submit a Preliminary report to this Tribunal within 75 (seventy-five) days from the liquidation commencement date as per regulation 13 of the Insolvency and Bankruptcy (Liquidation Process) Regulations, 2016. Further such other or further report as is required to be filed under the relevant Regulations, in addition, shall also be duly filed by him with this Adjudicating Authority.

10. The Registry and Liquidator are directed to communicate the order to the Registrar of Companies and to the Insolvency and Bankruptcy

Board of India;

11. The order of Moratorium passed under Section 14 of the Insolvency and Bankruptcy Code, 2016 shall cease to have its effect and a fresh

Moratorium under section 33(5) of the Insolvency and Bankruptcy Code shall commence.

12. In the instant case, the CoC has not fixed the monthly fee of the Liquidator. We fix a sum of Rs. 2,00,000/- (Rupees Two Lakhs only) to be paid to the Liquidator to meet the initial expenses to perform the functions assigned to him in accordance with the Regulations.

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

13. Copy of this order be sent to the Operational Creditors, Corporate

Debtor and the Liquidator for taking necessary steps and for extending the necessary co-operation in relation to the Liquidation process of the Corporate Debtor.

14. In terms of the above, IA(IBC)(LIQ)/11/2025 is accordingly disposed of.

15. Applications IA(IBC)/354(CHE)/2025 and IA(IBC)/355(CHE)/2025 have been filed by the Commercial Taxes Department of Government of Tamil Nadu against the rejection of claims by the RP vide communication dated 17.12.2024 on the ground that the Department filed the claims beyond the period of 30 days from the commencement of CIRP. A request has also been made seeking condonation of delay of 63 days in filing the application IA/354/2025 stating that the Applicant /

Department is a Statutory Body and it is bound by procedural hierarchies, where approvals at multiple levels are mandatory which took considerable time resulting into delays.

16. In response to the above applications, it was submitted by the RP that except the delay, there is no other objection as to the admission of claims. IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited

17. On a perusal of record, we find that the claims were filed by the Department / Applicant during the CIRP. Now this Tribunal vide the above order in IA(IBC)(LIQ)/11/2025 has passed an order for the liquidation of the Corporate Debtor and appointed the Liquidator. The Liquidator has to give fresh publication inviting the claims from the Stakeholders. The Applicant being one of the Stakeholder can file the claim before the Liquidator in accordance with law.

18. With these observations, both the applications IA(IBC)/354(CHE)/2025 and IA(IBC)/355(CHE)/2025 are disposed of with liberty to the Applicant / Department to file the claims before the Liquidator who is directed to consider the claims as per law.

19. In terms of the above directions, all the three applications

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 and IA(IBC)/355(CHE)/2025 are accordingly disposed of.

-Sd- -Sd- VENKATARAMAN SUBRAMANIAM SANJIV JAIN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

IA(IBC)(LIQ)/11/2025; IA(IBC)/354(CHE)/2025 & IA(IBC)/355(CHE)/2025 IN CP(IB)/213(CHE)/2023 In the matter of M/s. Sakthi Ganesh Textiles Private Limited