# In the matter of Prithvi Finvest Co. Private Limited CP (IB) No. 695-KB-2017

> NCLT judgment dated 2019-12-02. Citation: TCN-2019-NCLT-00377. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Dec 2019
- **Citation:** TCN-2019-NCLT-00377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prithvi-finvest-co-private-limited-cp-ib-no-695-kb-2017-a05a2006

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Olympia Credits & Mercantile Private Limited (Financial Creditor) against Prithvi Finvest Co. Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The application was admitted on 2018-01-15, and Mr. Rajesh Kumar Kejriwal was appointed as the IRP, later replaced by Mr. Jitendra Lohia. The CIRP process continued, but only one expression of interest was received from a Resolution Applicant, and the CIRP ended without a Resolution Plan. The CIRP period of 270 days expired on 2018-10-11, and a further period of 330 days also expired.

## Facts

Olympia Credits & Mercantile Private Limited initiated CIRP against Prithvi Finvest Co. Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 2018-01-15. Rajesh Kumar Kejriwal was appointed as IRP, later replaced by Jitendra Lohia. The CIRP process continued, but only one expression of interest was received. The initial Resolution Plan was rejected by the COC, and a revised plan was not submitted. The CIRP period of 270 days expired on 2018-10-11, and an additional 330 days also expired. The Appellate Tribunal restrained the approval of a Resolution Plan or liquidation order. The RP reported the absence of a Resolution Plan. The 9th COC meeting discussed the Resolution Plan, and the 10th COC meeting recorded

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## Issues and analysis

### Issue 1: Whether an order of liquidation should be passed given the failure to achieve a resolution plan …

**Ratio:** Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016, mandates the initiation of

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**Reasoning:** The court reasoned that the CIRP period had expired, and despite efforts, no viable

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if the CIRP fails to produce a

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**Application:** In this case, the CIRP period had expired, and no resolution plan was approved.

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## Parties

- **Judges:** Shri. Jina…; Shri. Harish…
- **Appellants:** Olympia Credits &…
- **Respondents:** Prithvi Finvest…

## Timeline

- **2018-01-15 — CIRP Init…**: Application admitted and Mr. Rajesh…
- **2018-10-11 — CIRP Period…**: CIRP period of 270 days…

## 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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