# In the matter of AAA Insolvency Professionals LLP vs. Edelweiss Asset Reconstruction Pvt. Ltd.

> NCLAT judgment dated 2024-04-29. Citation: TCN-2024-NCLAT-00476. The case involves an appeal against an order dated 2024-01-12 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLAT-00476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aaa-insolvency-professionals-llp-vs-edelweiss-asset-reconstruction-pvt-ltd-0bea31fd

## Summary

### Background

The case involves an appeal against an order dated 2024-01-12 passed by the Adjudicating Authority (National Company Law Tribunal, Ahmadabad Bench) partly allowing an application related to the liquidation of PSL Limited (Corporate Debtor). The CIRP was initiated against the Corporate Debtor, and Nilesh Sharma was appointed as the Interim Resolution Professional (IRP). Subsequently, Nitin Jain was appointed as the Resolution Professional (RP). The CIRP failed, leading to the initiation of liquidation. The liquidator was directed to conduct the sale of the Corporate Debtor as a going concern. The liquidator then faced summons from the Enforcement Directorate (ED) and filed a writ petition before the Delhi High Court. The liquidator also filed applications for exclusion

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## Facts

PSL Limited (Corporate Debtor) initiated Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 2019-02-15. Nilesh Sharma was appointed as the Interim Resolution Professional (IRP). The Committee of Creditors (CoC) appointed Nitin Jain as the Resolution Professional (RP). The CIRP failed, and the RP filed an application for liquidation on 2020-01-15. The Adjudicating Authority ordered liquidation on 2020-09-11 and appointed the RP as the liquidator. The liquidator issued a public announcement on 2020-09-15 to invite claims. The liquidator filed an application for extension of the liquidation period, which was granted. The liquidator received summons from the Enforcement Directorate (ED) and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in appointing Respondent No. 2 as the liquidator instead …

**Ratio:** The Adjudicating Authority has the power to appoint or remove the liquidator for reasons

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**Reasoning:** The Adjudicating Authority's decision is supported by the power vested in it to appoint

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**Interpretation:** The Adjudicating Authority's power to appoint a liquidator is not solely

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**Application:** The Adjudicating Authority's decision to appoint Respondent No. 2 as the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** AAA Insolvency…
- **Respondents:** PSL Lim…; Edelweiss Asset…

## Timeline

- **2017-01-01 — Application…**: PSL Limited (Corporate Debtor) filed an application bearing С.Р. (IB)/37/AHM/2017 under…
- **2019-02-15 — CIRP Admi…**: The application was admitted, and CIRP was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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