# In the matter of Prism Infracon Limited CP(IB)No.762-KB-2017

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00647. The case involves an application filed by Mr. Noor Alam, along with 27 other debenture holders…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prism-infracon-limited-cpibno762-kb-2017-15034831

## Summary

### Background

The case involves an application filed by Mr. Noor Alam, along with 27 other debenture holders of Prism Infracon Limited, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Prism Infracon Limited. The basis for the application was the Corporate Debtor's default in paying the amount due against the debenture certificates on their maturity dates, along with accrued interest. The total debt amount was stated to be ₹49,16,000. The Adjudicating Authority admitted the Corporate Debtor into CIRP on 03.07.2018 and appointed Mr. Partha Kamal Sen as the Interim Resolution Professional (IRP).

## Facts

Mr. Noor Alam, along with 27 other debenture holders, filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Prism Infracon Limited due to a default in payment against debenture certificates. The total debt was ₹49,16,000. The Adjudicating Authority admitted the Corporate Debtor into CIRP on 03.07.2018 and appointed Mr. Partha Kamal Sen as the Interim Resolution Professional (IRP). The CIRP period of 180 days completed on 29.12.2018 and was extended for 90 days, and the CIRP period of 270 days got over on 29.03.2019. The Corporate Debtor challenged almost every action of the RP. The Corporate Debtor had appointed an intermediator for debenture holders, but this

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Corporate Debtor defaulted in paying the amount due against the debenture

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**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to recover

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**Application:** The application was maintainable as the Corporate Debtor defaulted in paying

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Noor…
- **Respondents:** Prism Infracon…
- **Advocates:** KunalKa…; Tanushree…; +1 more

## Timeline

- **2016-01-01 — Enactment of…**: The Insolvency and…
- **2018-07-03 — Admission in…**: The Adjudicating Authority admitted…

## 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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