# In the matter of Paramex Transformers Limited (IB)1125(ND)2019

> NCLT judgment dated 2020-06-17. Citation: TCN-2020-NCLT-01154. The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 17 Jun 2020
- **Citation:** TCN-2020-NCLT-01154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramex-transformers-limited-ib1125nd2019-ae2025c4

## Summary

### Background

The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Santosh Associates, the Operational Creditor, against M/s. Paramex Transformers Limited. The petition was initially admitted on 2019-11-26. An Interim Resolution Professional (IRP) was appointed and later confirmed as Resolution Professional (RP).

## Facts

M/s. Santosh Associates, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Paramex Transformers Limited. The petition was admitted on 2019-11-26. An IRP was appointed but sought discharge due to time constraints and health issues, also citing involvement in other liquidation and resolution processes. The IRP's application was approved, and a new IRP, Mr. Rajeev Lochan, was appointed. The applicant, M/s. Santosh Associates, was directed to deposit Rs. 2 Lakhs to cover the IRP's immediate expenses. This deposit is to be accounted for by the IRP and reimbursed to the applicant as costs of the CIRP.

## Issues and analysis

### Issue 1: Whether the application of the Interim Resolution Professional (IRP) to be discharged from their …

**Ratio:** An IRP can be discharged from their duties if they demonstrate valid reasons such as lack

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**Reasoning:** The court considered the IRP's submission regarding their inability to continue due to

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**Interpretation:** The interpretation is that an IRP's role is critical, and if they cannot

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**Application:** The IRP's application was approved based on the demonstrated reasons, ensuring

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** M/s. Santosh…
- **Respondents:** M/s. Paramex…

## Timeline

- **2019-11-26 — Admission of…**: The petition filed by M/s. Santosh Associates against M/s. Paramex Transformers Limited…
- **2020-06-17 — Order Del…**: The order was delivered on June 17, 2020, approving the discharge of the previous IRP and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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