# In the matter of Parasrampuria Synthetics Ltd. IA No. 40-JPR-2019 & TA No. 75-2018 in IB No. 155-PB-2018

> NCLT judgment dated 2019-02-15. Citation: TCN-2019-NCLT-04836. The case involves a resolution applicant objecting to the Committee of Creditors' (CoC)…

- **Court:** NCLT
- **Order date:** 15 Feb 2019
- **Citation:** TCN-2019-NCLT-04836
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/parasrampuria-synthetics-ltd-ia-no-40-jpr-2019-ta-no-75-2018-in-ib-no-155-pb-201-4869eab5

## Summary

### Background

The case involves a resolution applicant objecting to the Committee of Creditors' (CoC) decision to initiate liquidation instead of considering the applicant's proposal for reconsideration. An application was filed under Section 33(2) of the Insolvency and Bankruptcy Code (IBC) to initiate the liquidation of the Corporate Debtor. The resolution applicant's proposal was rejected by 88.90% of the voting power of the CoC. The voting took place from January 20, 2019, to January 21, 2019. The CoC also resolved via e-voting to liquidate the assets of the Corporate Debtor.

## Facts

Asset Reconstruction Company (India) Ltd. filed an application under Section 7 of the IBC, 2016, against M/s Parasarampuria Synthetics Ltd. The resolution applicant objected to the CoC's decision to initiate liquidation instead of considering their proposal. The resolution applicant's proposal was rejected by 88.90% of the CoC's voting power. The voting occurred between January 20, 2019, and January 21, 2019. The CoC also resolved to liquidate the assets of the Corporate Debtor under Section 33(2) of the IBC. The approval for liquidation was granted by 88.92% of the voting power of the CoC. The period of 270 days had expired on February 10, 2019. The Resolution Professional, Mr. Rajesh JhunJhunwala, was named as the Insolvency Liquidator.

## Issues and analysis

### Issue 1: Whether the decision of the CoC to initiate liquidation instead of considering the resolution …

**Ratio:** The CoC has the authority to make decisions regarding the resolution process, including

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**Reasoning:** The court considered that the resolution applicant's proposal was rejected by a

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**Interpretation:** The legal issue revolves around the CoC's discretionary power in the insolvency

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**Application:** In this specific case, the CoC's decision was based on the overwhelming

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** Asset Reconstructi…
- **Respondents:** M/s Parasarampuria…
- **Advocates:** Ankit…; Shailendra…

## Timeline

- **2019-01-20 — Voting Star…**: Voting on the resolution…
- **2019-01-21 — Voting En…**: Voting on the resolution…

## 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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