# In the matter of P.P. Bafna Ventures Private Limited vs. Punjab National Bank & Ors. Company Appeal (AT) (CH) (INS.) No. 331 & 332 of 2022

> NCLAT judgment dated 2023-02-20. Citation: TCN-2023-NCLAT-00714. The case involves two Company Appeals (AT) (CH) (INS.) No. 331 & 332 of 2022 filed against…

- **Court:** NCLAT
- **Order date:** 20 Feb 2023
- **Citation:** TCN-2023-NCLAT-00714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pp-bafna-ventures-private-limited-vs-punjab-national-bank-ors-company-appeal-11fcbe0d

## Summary

### Background

The case involves two Company Appeals (AT) (CH) (INS.) No. 331 & 332 of 2022 filed against the 'impugned order' dated 22.08.2022 in IA(IBC) Nos. 53 & 54 of 2022 in CP(IB) No. 204/7/AMR/2019, passed by the `Adjudicating Authority', (`National Company Law Tribunal', Amaravati Bench, Mangalagiri). The appeals challenge the Adjudicating Authority's decision regarding the resignation of directors (Bafna) and their status as related parties in the Committee of Creditors (CoC). The core issue revolves around whether the resignation of 'Bafna' came into effect, excluding them from the related party category and CoC membership.

## Facts

P.P. Bafna Ventures Private Limited (Appellant) filed applications against KVR Industries Private Limited (Corporate Debtor) under the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority ruled that Mr. Praful Prakash Bafna and Mr. Yogesh Prakash Bafna, nominee directors of P.P. Bafna Ventures, were related parties and could not be part of the Committee of Creditors (CoC). This decision was based on the finding that their resignation letters were not properly served to KVR Industries. The resignation letters were sent via courier on 11.02.2022, but delivery failed due to a locked door. The courier receipt showed an incorrect pin code (430016 instead of 532127). The order admitting the Corporate Debtor into CIRP is on 18.02.2022. The appellant argues that

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## Issues and analysis

### Issue 1: Whether the resignation of Mr. Praful Prakash Bafna and Mr. Yogesh Prakash Bafna, nominee directors …

**Ratio:** Effective resignation requires compliance with Section 168 of the Companies Act, 2013,

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**Reasoning:** The court reasoned that the resignation notices were not effectively served because the

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**Interpretation:** The court interpreted Section 168 of the Companies Act, 2013, and Section 27 of

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**Application:** The court applied the ratio to the facts by finding that the appellant failed

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## Parties

- **Judges:** M. Venu…; Naresh Sa…
- **Appellants:** P.P. Bafna…
- **Respondents:** KVR Industries…; Punjab National…

## Timeline

- **2019-01-01 — CP(IB) No. 204/7/AMR/201…**: Application filed for initiation of…
- **2018-12-29 — Agreemen…**: Appellant and Corporate Debtor entered into three Agreements: Inter Corporate Deposit…

## 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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