# In the matter of P. K. Sales Company Pvt. Ltd. (IB)-417-(ND)-2017

> NCLT judgment dated 2018-09-13. Citation: TCN-2018-NCLT-00766. The Resolution Professional (RP) filed CA 198/2018 under Section 33(1)(a) read with Section…

- **Court:** NCLT
- **Order date:** 13 Sept 2018
- **Citation:** TCN-2018-NCLT-00766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/p-k-sales-company-pvt-ltd-ib-417-nd-2017-ce2728e8

## Summary

### Background

The Resolution Professional (RP) filed CA 198/2018 under Section 33(1)(a) read with Section 33(2) of the Insolvency and Bankruptcy Code (IBC) seeking an order for the liquidation of the Corporate Debtor, P. K. Sales Company Pvt. Ltd. Two major claimants of the Corporate Debtor are Karnataka Bank and Bank of Baroda. The RP quantified a total claim of Rs. 41.82 crores. An objector/resolution applicant increased the bid to 8 crores, but the Committee of Creditors (COC) rejected it in the last meeting.

## Facts

The Resolution Professional (RP) filed an application (CA 198/2018) under Section 33(1)(a) read with Section 33(2) of the IBC seeking an order for the liquidation of P. K. Sales Company Pvt. Ltd., the Corporate Debtor. Two major claimants are Karnataka Bank and Bank of Baroda, with a total claim of Rs. 41.82 crores. An objector/resolution applicant increased the bid to 8 crores, but the Committee of Creditors (COC) rejected it. The COC recommended the RP as the Insolvency Liquidator, but the RP declined due to unpaid fees and expenses. The court accepted the COC's decision and allowed the liquidation application.

## Issues and analysis

### Issue 1: Whether the application for liquidation of …

**Ratio:** The court generally defers to the commercial wisdom of the Committee of Creditors (COC)

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**Reasoning:** The court accepted the final decision of the COC to reject the increased bid and proceed

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**Interpretation:** The court interprets the IBC to grant significant weight to the COC's

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**Application:** The COC's decision to reject the bid and proceed with liquidation was accepted

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## Parties

- **Judges:** Ina Mal…; DEEΡΑ KR…
- **Appellants:** Amit…
- **Respondents:** P. K. Sales…; Sanjay…
- **Advocates:** Amit…; Subhash C.…; +2 more

## Timeline

- **2018-09-13 — Order Del…**: Order delivered on…
- **2018-09-19 — Listing for Liquidator…**: Be listed on 19th September, 2018 for proposing the name of the liquidator and for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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