# In the matter of PD Advisory Services LLP I.A. 1900 (PB)-2020 in Company Petition No. (IB)-1096 (PB)-2019

> NCLT judgment dated 2020-09-04. Citation: TCN-2020-NCLT-00701. The case pertains to an application filed by the Resolution Professional under Section 33(1)(a)…

- **Court:** NCLT
- **Order date:** 4 Sept 2020
- **Citation:** TCN-2020-NCLT-00701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pd-advisory-services-llp-ia-1900-pb-2020-in-company-petition-no-ib-1096-pb-2019-779a8c6c

## Summary

### Background

The case pertains to an application filed by the Resolution Professional under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, seeking directions for the liquidation of the corporate debtor, M/s. PD Advisory Services LLP. The Financial Creditor, Mr. Bharat Chugh, had previously filed an application under Section 7 of the Code for initiating the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, which was admitted on 21.10.2019. Ms. Maya Gupta was appointed as the Interim Resolution Professional (IRP).

## Facts

The Financial Creditor, Bharat Chugh, initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. PD Advisory Services LLP, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2019-10-21. Maya Gupta was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed, with Bharat Chugh as the sole member holding 100% voting share. The IRP issued Form-G to invite Expression of Interest (Eol) for resolution plans, with a deadline of 2020-02-10. However, no Eol was received. The Resolution Professional (RP) informed the CoC that no resolution plan was submitted as per regulation 36A of IBBI (CIRP) Regulations, 2016. Consequently, the CoC resolved to liquidate the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor should be allowed due to the …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, mandates that if the

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**Reasoning:** The court reasoned that the CIRP had failed as no resolution plan was received despite

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**Interpretation:** Section 33(1)(a) is interpreted strictly to mean that liquidation is the

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**Application:** In this case, the CIRP failed because no Expression of Interest (Eol) was

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## Parties

- **Judges:** B.S.V. Prakash…; HEMANT KUMAR…
- **Appellants:** Bharat…
- **Respondents:** PD Advisory…; Arun Sa…

## Timeline

- **2019-10-21 — Admission of CIRP…**: The application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by the…
- **2018-11-19 — First Meeting…**: The first meeting of the Committee of Creditors (CoC) was held, and the Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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