Bankruptcy Court admits Oban Fashions under insolvency resolution
Oban Fashions Pvt Ltd, a wholly-owned subsidiary of listed Knitwear brands Rupa & Co Ltd under the Corporate Insolvency Resolution Process (CIRP) in an application filed by its operational creditor Sunrise Knitting Mills Pvt Ltd.
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The Mumbai bench of the National Company Law Tribunal (NCLT) admitted the company and appointed Sanjay Ramdas Mahajan as an Interim Resolution Professional (IRP). During 2016 and 17, Oban Fashions entered into licensing agreements with international fashion brands such as FCUK and Fruit of the Loom to market and distribute these brands in India.
“The debt so owed by the corporate debtor (Oban Fashions) to the operational creditor (Sunrise Knitting Mills) against the supply of garments falls within the definition of ‘operational debt’ under Section 5(21) of the IBC,” observed the division bench of judicial member KR Saji Kumar and a technical member Sanjiv Dutt in its order of January 7.
“Hence, we find that the operational creditor has been able to substantiate the existence of an operational debt above the threshold limit prescribed under the Code due and payable by the corporate debtor which remained unpaid,” observed the bench while admitting the company.
Before the tribunal’s order, Sunrise Knitting Mills through its counsel Rohan Rajadhyaksha argued that, in 2019, it had supplied certain goods
