# In the matter of Linkson International Ltd. CP 1267-I&BC-2017

> NCLT judgment dated 2018-07-20. Citation: TCN-2018-NCLT-01108. Punjab National Bank filed CP No. 1267 of 2017 under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Jul 2018
- **Citation:** TCN-2018-NCLT-01108
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/linkson-international-ltd-cp-1267-ibc-2017-933c7ab6

## Summary

### Background

Punjab National Bank filed CP No. 1267 of 2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Linkson International Ltd. The Resolution Professional (RP) filed a report recommending liquidation of the Corporate Debtor, as resolved by the Committee of Creditors (CoC). The Section 7 petition was admitted on 6.10.2017, and an Interim Resolution Professional (IRP) was appointed. A public announcement was issued on 14.10.2017 inviting claims from creditors. The CoC was constituted comprising only Punjab National Bank (PNB) as the financial creditor.

## Facts

Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against Linkson International Ltd. by filing CP No. 1267 of 2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The petition was admitted on 6.10.2017. An Interim Resolution Professional (IRP) was appointed, and a public announcement was made on 14.10.2017, inviting claims from creditors. The Committee of Creditors (CoC) was formed, consisting solely of PNB. The IRP filed an application (MA No. 558/2017) seeking cooperation from the Corporate Debtor's directors in providing financial information. The CoC approved the continuation of the IRP as the Resolution Professional (RP). The RP informed the CoC about the difficulties in preparing an information memorandum due

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be liquidated based on the recommendation of the Committee of …

**Ratio:** Section 33(2) of the IBC allows the Adjudicating Authority to pass an order for

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**Reasoning:** The CoC, comprising primarily of PNB, unanimously resolved to liquidate the Corporate

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**Interpretation:** Section 33(2) provides the legal basis for the Adjudicating Authority to order

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**Application:** The court applied Section 33(2) based on the CoC's recommendation and the RP's

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## Parties

- **Judges:** B.S.V. Prakash…; RavikumarDu…
- **Appellants:** Punjab National…
- **Respondents:** Linkson Internatio…

## Timeline

- **2017-01-01 — CP Filed…**: Punjab National Bank filed CP No.…
- **2017-10-06 — Admission of…**: Section 7 Petition…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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