# In the matter of PPS Enviro Power Private Limited IA (IBC) No. 144,478,704 & 709-2021 in CP (IB) No. 407-7-HDB-2018

> NCLT judgment dated 2021-12-24. Citation: TCN-2021-NCLT-00024. The case involves an application (IA No. 144/2021) filed by the Resolution Professional of PPS…

- **Court:** NCLT
- **Order date:** 24 Dec 2021
- **Citation:** TCN-2021-NCLT-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pps-enviro-power-private-limited-ia-ibc-no-144478704-709-2021-in-cp-ib-no-407-7-10a0c1da

## Summary

### Background

The case involves an application (IA No. 144/2021) filed by the Resolution Professional of PPS Enviro Power Private Limited, the Corporate Debtor, seeking approval of a resolution plan submitted by Zulaikha Motors Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated following a petition by State Bank of India under Section 7 of the IBC. The Committee of Creditors (CoC) had approved the resolution plan. However, the Successful Resolution Applicant failed to submit a Performance Bank Guarantee (PBG) as required under the RFRP and IBBI regulations.

## Facts

State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against PPS Enviro Power Pvt Ltd under Section 7 of the IBC. The petition was admitted on 2019-08-13. Zulaikha Motors Private Limited submitted a resolution plan, which was approved by the Committee of Creditors (CoC) with 100% votes. The Resolution Professional filed IA No. 144/2021 seeking approval of the resolution plan. The Successful Resolution Applicant failed to submit a Performance Bank Guarantee (PBG) as required under the Request for Resolution Plan (RFRP) and Regulation 39 (B) (4A) of the IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016. Despite multiple extensions, the PBG was not furnished. The Resolution Professional also filed IA 478/2021 seeking a

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## Issues and analysis

### Issue 1: Whether the resolution plan should be approved when the Successful Resolution Applicant has failed …

**Ratio:** The requirement of a Performance Bank Guarantee (PBG) is a crucial condition for the

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**Reasoning:** The court reasoned that the failure to furnish the PBG, despite multiple opportunities

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**Interpretation:** The interpretation of Regulation 39 (B) (4A) and the RFRP conditions is that

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**Application:** In this case, the Successful Resolution Applicant's failure to provide the PBG,

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** State Bank of…
- **Respondents:** PPS Enviro Power…

## Timeline

- **2018-01-01 — CP (IB) F…**: CP (IB) No.407/7/HDB/201…
- **2019-08-13 — Admission of…**: The Adjudicating Authority admitted the petition filed under Section 7 of the Code by…

## 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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