# Approval of Resolution Plan - Prowess International Pvt. Ltd.

> NCLT judgment dated 2017-10-17. Citation: TCN-2017-NCLT-00272. The Operational Creditor, Parker Hannifin India Private Limited, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 17 Oct 2017
- **Citation:** TCN-2017-NCLT-00272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-prowess-international-pvt-ltd-be73a67c

## Summary

### Background

The Operational Creditor, Parker Hannifin India Private Limited, filed a petition under Section 9 of the Insolvency and Bankruptcy Code 2016. The petition sought the initiation of a corporate insolvency resolution process against Prowess International Pvt. Limited. The petition was admitted on April 20, 2017. An Insolvency Resolution Professional (IRP), Shri Arun Kumar Gupta, was appointed and confirmed by the Committee of Creditors (CoC). The IRP filed a progress report stating that only one claim was received from the Financial Creditor, Punjab National Bank (PNB). Two other claims from operational creditors (Parker Hannifin India Pvt. Ltd. and Poonam Enterprise) were received and settled to the satisfaction of the claimants. The CoC was constituted under Section 21

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## Facts

Parker Hannifin India Pvt. Ltd., an operational creditor, initiated corporate insolvency resolution process (CIRP) against Prowess International Pvt. Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on April 20, 2017. Arun Kumar Gupta was appointed as the Insolvency Resolution Professional (IRP). The Committee of Creditors (CoC) was formed, with Punjab National Bank (PNB) holding 100% voting share as the sole financial creditor. PNB certified that Prowess International's account was a 'standard asset'. The CoC approved a resolution plan submitted by Mr. Prakash Kumar, CEO of Prowess International, noting the company's good financial position. All operational creditors, including Parker Hannifin and Poonam Enterprises,

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## Issues and analysis

### Issue 1: Whether the resolution plan submitted by …

**Ratio:** A resolution plan can be approved if it meets the requirements of the Insolvency and

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**Reasoning:** The Committee of Creditors (CoC), with Punjab National Bank holding 100% of the voting

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, allows for the approval of a

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**Application:** In this case, the resolution plan was approved by the CoC, which included the

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## Parties

- **Judges:** Vijai Prata…; Jinan…
- **Appellants:** Parker Hannifin…
- **Respondents:** Prowess Internatio…

## Timeline

- **2017-04-20 — Admission of…**: The petition filed by Parker Hannifin India Private Limited under Section 9 of the…
- **2017-10-12 — 4th Meeting of…**: The participants ratified that the agenda of the 4th meeting was as follows: Presentation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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