# In the matter of Powercon Projects & Association Limited IA No.90-CTB-2019 in TP No. 116-CTB-2019 {earlier CP (IB) No. 389-KB-2018}

> NCLT judgment dated 2021-12-22. Citation: TCN-2021-NCLT-00070. The case involves an appeal against the order dated 25.06.2019 passed by the Liquidator…

- **Court:** NCLT
- **Order date:** 22 Dec 2021
- **Citation:** TCN-2021-NCLT-00070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/powercon-projects-association-limited-ia-no90-ctb-2019-in-tp-no-116-ctb-2019-ear-3212a0c8

## Summary

### Background

The case involves an appeal against the order dated 25.06.2019 passed by the Liquidator accepting the claim of Concept Management Consulting Limited. The appellant, State Bank of India (SBI), a secured financial creditor, filed an application against this order. The Corporate Insolvency Resolution Process (CIRP) was initiated against Powercon Projects & Associates Limited based on an application filed by C.G. Power and Industrial Solutions Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT Kolkata Bench admitted the application on 10.07.2018 and appointed Mr. Anand Chandra Swain as the Interim Resolution Professional (IRP). The IRP made a public announcement, and SBI filed its claim, which was accepted.

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## Facts

C.G. Power and Industrial Solutions Limited, an operational creditor, initiated CIRP against Powercon Projects & Associates Limited, the corporate debtor, under Section 9 of the IBC, 2016. The NCLT Kolkata Bench admitted the application on 10.07.2018, appointing Mr. Anand Chandra Swain as the IRP. The IRP made a public announcement, and SBI, a secured financial creditor, filed its claim, which was accepted. Concept Management Consulting Limited also filed a claim, which was initially allegedly rejected due to lack of substantiating documents. During a CoC meeting, a resolution was passed stating that there was no possibility of continuance of the resolution process due to a winding-up petition already moved by SBI before the High Court of Orissa. The RP then prayed

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## Issues and analysis

### Issue 1: Whether the appeal filed by SBI is maintainable under Section 42 of the IBC, 2016, to challenge the …

**Ratio:** Section 42 of the IBC, 2016, defines the scope of appeal against the decision of the

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**Reasoning:** The court reasoned that the scope of Section 42 of IBC, 2016 does not entitle any

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**Interpretation:** Section 42 of the IBC is interpreted to limit the right of appeal to decisions

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**Application:** The court applied this interpretation to the facts, finding that SBI's appeal

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## Parties

- **Judges:** Rajasekha…; Satya Ranjan…
- **Appellants:** State Bank of…
- **Respondents:** Powercon Projects…; Chaitanya Kumar…
- **Advocates:** Ramesh Chandra…; Saroj Kr.…

## Timeline

- **2018-07-10 — CIRP Init…**: NCLT Kolkata Bench admitted the application filed by C.G. Power and Industrial Solutions…
- **2018-07-10 — Appointment…**: Mr. Anand Chandra Swain was appointed as the…

## 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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