# In the matter of Poscho Steels Private Limited IA No. 35 & 2399-2020 in CP(IB) No. 240-MB-2019

> NCLT judgment dated 2021-03-23. Citation: TCN-2021-NCLT-02602. The case involves an application filed by the Resolution Professional (RP) under Section 33 of…

- **Court:** NCLT
- **Order date:** 23 Mar 2021
- **Citation:** TCN-2021-NCLT-02602
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/poscho-steels-private-limited-ia-no-35-2399-2020-in-cpib-no-240-mb-2019-a4679cc1

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 33 of the Insolvency & Bankruptcy Code, 2016, seeking liquidation of the Corporate Debtor, Poscho Steels Pvt Ltd. The Corporate Insolvency Resolution Process (CIRP) was conducted in accordance with the provisions of the Code. The RP did not receive any expression of interest after issuing Form G. The Committee of Creditors (CoC), with Punjab National Bank as the sole Financial Creditor, decided in its meeting on June 1, 2020, with a 100% voting share, to liquidate the Corporate Debtor.

## Facts

The Resolution Professional (RP) filed an application under Section 33 of the Insolvency & Bankruptcy Code, 2016, seeking liquidation of Poscho Steels Pvt Ltd, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was conducted in accordance with the provisions of the Code. After issuing Form G, the RP did not receive any expression of interest. The Committee of Creditors (CoC), consisting solely of Punjab National Bank as the Financial Creditor, decided in a meeting held on June 1, 2020, with a 100% voting share, to liquidate the Corporate Debtor. The CoC decided to appoint the present Resolution Professional as the Liquidator and fixed a fee of Rs. 50,000 per month for the Liquidator and another Rs. 50,000 for liquidation expenses. The

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Poscho Steels Private Limited, …

**Ratio:** Section 33 of the Insolvency & Bankruptcy Code, 2016, allows for the liquidation of a

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**Reasoning:** The court considered that the CIRP had been conducted in accordance with the provisions

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**Interpretation:** Section 33 provides a mechanism for liquidation when the CIRP does not result

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**Application:** The court applied Section 33 to the facts of the case, noting that the CIRP had

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## Parties

- **Judges:** V. Nallasen…; Janab Mohammed…
- **Appellants:** Punjab National…
- **Respondents:** Poscho Steels Pvt…

## Timeline

- **2020-06-01 — CoC Meet…**: The Committee of Creditors (CoC), with Punjab National Bank as the sole Financial…
- **2021-03-23 — Order Da…**: The NCLT issued an order allowing the application for liquidation of the Corporate Debtor…

## Legal provisions

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

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