# In the matter of Prescot Productions Private Limited IA-1237-IB-2020 & IA-175-CHE-2021 in IBA-40-2019

> NCLT judgment dated 2021-09-02. Citation: TCN-2021-NCLT-01207. The case involves an application (IA/175/CHE/2021) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 2 Sept 2021
- **Citation:** TCN-2021-NCLT-01207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prescot-productions-private-limited-ia-1237-ib-2020-ia-175-che-2021-in-iba-40-20-6a47bcba

## Summary

### Background

The case involves an application (IA/175/CHE/2021) filed by the Resolution Professional (RP) of the Corporate Debtor, M/s. Prescot Productions Private Limited, under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an order of liquidation. An earlier Section 7 application by a Financial Creditor led to the initiation of the Corporate Insolvency Resolution Process (CIRP) in IBA/40/2019, and the appointment of the Applicant as Interim Resolution Professional (IRP). The RP faced non-cooperation from the erstwhile Directors, leading to the filing of IA/1237/2020 seeking directions from the Tribunal. The Corporate Debtor's premises were found occupied by another company, and there was no activity for over a year. The CoC decided to liquidate the

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## Facts

M/s. Prescot Productions Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated via IBA/40/2019 following a Section 7 application by a Financial Creditor. Pathukasahasram Raghunathan Raman was appointed as the Interim Resolution Professional (IRP) and later continued as Resolution Professional (RP). The RP faced non-cooperation from the suspended directors, Jayashree Menon and Venkateswara Rao, who failed to provide necessary documents and information. The Corporate Debtor's registered office was found to be occupied by another company, and the business had been inactive for over a year. The RP received claims from one Financial Creditor and one Operational Creditor. The Committee of Creditors (CoC) decided in its 3rd meeting on 27.02.2020

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Prescot Productions Private Limited, should be liquidated under …

**Ratio:** Section 33(2) of the IBC, 2016 allows the Adjudicating Authority to pass a liquidation

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**Reasoning:** The CoC, in its 3rd meeting, decided to liquidate the Corporate Debtor due to its

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**Interpretation:** Section 33(2) grants the Adjudicating Authority the power to order liquidation

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**Application:** The CoC's decision, coupled with the Corporate Debtor's non-viability and lack

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Pathukasahasram…
- **Respondents:** M/s. Prescot…; Jayashree…

## Timeline

- **2019-08-23 — Initiation…**: Tribunal passed an order in IBA/40/2019 initiating the Corporate Insolvency Resolution…
- **2019-08-28 — Public Annou…**: Applicant caused Public Announcement under Section 15 of IBC, 2016 in Form-A in English…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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