# In the matter of Panama Systems Pvt. Ltd. M.A. No. 3893 & 4058 of 2019 in C.P. No. 1237-IB-2019

> NCLT judgment dated 2020-12-10. Citation: TCN-2020-NCLT-00105. The case involves an application (M.A. No. 4058 of 2019) filed in C.P. No. 1237/IB/2019 under…

- **Court:** NCLT
- **Order date:** 10 Dec 2020
- **Citation:** TCN-2020-NCLT-00105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/panama-systems-pvt-ltd-ma-no-3893-4058-of-2019-in-cp-no-1237-ib-2019-25edacaa

## Summary

### Background

The case involves an application (M.A. No. 4058 of 2019) filed in C.P. No. 1237/IB/2019 under Section 30(1) r.w. Section 60(5)(C) of the Insolvency & Bankruptcy Code, 2016. The applicant sought directions for the Resolution Professional (R-1) to scrutinize and validate a resolution plan and for the Committee of Creditors (R-2) to consider and vote upon it. The applicant argued that the Expression of Interest (EOI) was published late, hindering the submission of a resolution plan. The CoC resolved for liquidation before the CIRP period ended. Separately, an application (M.A. No. 3893 of 2019) was filed by the Resolution Professional seeking liquidation of the Corporate Debtor under Section 33(1) of the Insolvency and Bankruptcy Code, 2016, due to the absence of a

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## Facts

Mrs. Lata Ajit Shah, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Panama Systems Pvt. Ltd. The Adjudicating Authority admitted the petition on 2019-07-10. Ms. Neelima Anil Bhate was appointed as Interim Resolution Professional (IRP), later replaced by Ms. Vaishali A. Patrikar as Resolution Professional (RP). The first Expression of Interest (EOI) was published on 2020-10-23, which the applicant argued was beyond the permissible 75-day period from the CIRP commencement date of 2019-07-10. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor on 2019-11-20, and the RP filed an application for liquidation under Section 33 of the Insolvency & Bankruptcy Code, 2016. An applicant filed M.A. No. 4058 of

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## Issues and analysis

### Issue 1: Whether the delay in publishing the Expression of Interest (EOI) invalidates the liquidation …

**Ratio:** The Adjudicating Authority can initiate liquidation proceedings even before the expiry of

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**Reasoning:** The court reasoned that despite the delay in publishing the EOI, no resolution plan was

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**Interpretation:** Section 33(1) provides a clear legal basis for initiating liquidation

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**Application:** Even if the EOI was published late, the absence of a resolution plan justified

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Hemant Raykumar…
- **Respondents:** Panama Systems…; Vaishali Pa…
- **Advocates:** Avinash R.…; Prachi Wa…

## Timeline

- **2019-07-10 — Initiation…**: Adjudicating Authority directed initiation of Corporate Insolvency Resolution Process…
- **2019-08-14 — Appointment…**: In the 1st Committee of Creditors (CoC) meeting, Ms. Vaishali A. Patrikar was resolved to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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