# In the matter of Prithvi Ferro Alloys Private Limited IA (IB) No. 1212 & 1345-KB-2020 in CP (IB) No. 140-KB-2019

> NCLT judgment dated 2021-05-03. Citation: TCN-2021-NCLT-02232. The case involves two applications: IA No.1212/KB/2020 filed by the Resolution Professional…

- **Court:** NCLT
- **Order date:** 3 May 2021
- **Citation:** TCN-2021-NCLT-02232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prithvi-ferro-alloys-private-limited-ia-ib-no-1212-1345-kb-2020-in-cp-ib-no-140-bbe21a21

## Summary

### Background

The case involves two applications: IA No.1212/KB/2020 filed by the Resolution Professional (RP) of Prithvi Ferro Alloys Private Limited seeking approval of a Resolution Plan submitted by GR Sponge & Power Limited, and IA No.1345/KB/2020 filed by Ekvira Alloys Pvt. Ltd., an unsuccessful Resolution Applicant, objecting to the approval of the Resolution Plan by the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated against Prithvi Ferro Alloys Private Limited based on an application by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CoC initially resolved to liquidate the Corporate Debtor, but later allowed Ekvira to submit a Resolution Plan. GR Sponge also revised its plan. The CoC

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## Facts

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Prithvi Ferro Alloys Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). Samir Kumar Bhattacharya was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The RP issued invitations for Expressions of Interest (EoIs), receiving two responses. A Request for Resolution Plans (RFRP) was issued, but only GR Sponge & Power Limited submitted a plan initially. The CoC initially resolved to liquidate Prithvi Ferro Alloys. Ekvira Alloys Private Limited was later allowed to submit a Resolution Plan. GR Sponge also revised its plan. Ekvira objected to GR Sponge's plan, arguing that GR Sponge did not submit a

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## Issues and analysis

### Issue 1: Whether the condition requiring submission of a performance guarantee upfront in the RFRP is valid …

**Ratio:** Regulation 36B(4A) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The Adjudicating Authority reasoned that insisting on a performance guarantee at the time

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**Interpretation:** The requirement of a performance guarantee upfront is interpreted as being

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**Application:** The Adjudicating Authority held that the non-submission of the performance

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Punjab National…
- **Respondents:** Prithvi Ferro…; Ekvira Alloys…

## Timeline

- **2019-08-08 — Admission in…**: Punjab National Bank's application under Section 7 of the Code was admitted into…
- **2019-08-29 — First CoC M…**: Mr. Samir Kumar Bhattacharya was confirmed as the RP of the Corporate Debtor at the first…

## 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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