# In the matter of Propyl Packaging Limited IA(IBC)-106-KOB-2021 in IBA-52-KOB-2019

> NCLT judgment dated 18 Nov 2021. Citation: TCN-2021-NCLT-00451. This Interlocutory Application (IA) was filed by Mr. George Varkey, the Resolution…

- **Court:** NCLT
- **Order date:** 18 Nov 2021
- **Citation:** TCN-2021-NCLT-00451
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/propyl-packaging-limited-iaibc-106-kob-2021-in-iba-52-kob-2019-d315b918

## Summary

### Background

This Interlocutory Application (IA) was filed by Mr. George Varkey, the Resolution Professional (RP) of M/s. Propyl Packaging Limited, under Section 33(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). The RP sought an order for the liquidation of the Corporate Debtor and his appointment as the Liquidator under Section 34 of the IBC. The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Propyl Packaging Limited based on an application filed by M/s. Prayag Polytech Private Limited under Section 9 of the IBC, which was admitted by the Tribunal on February 17, 2020. Mr. George Varkey was initially appointed as the Interim Resolution Professional and subsequently confirmed as the RP by the Committee of Creditors (CoC) on August 3, 2020.

## Facts

The Interlocutory Application (IA) was filed by Mr. George Varkey, the Resolution Professional (RP) of M/s. Propyl Packaging Limited, under Section 33(1) of the IBC, 2016, seeking an order for the liquidation of the Corporate Debtor and his appointment as the Liquidator under Section 34 of the Insolvency and Bankruptcy Code, 2016.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, M/s. Propyl Packaging Limited, should be liquidated under Section…

**Ratio:** When the Committee of Creditors (CoC) resolves with the requisite majority to liquidate…

**Reasoning:** The court reasoned that despite multiple extensions and opportunities, including the…

**Interpretation:** The court interpreted Section 33(1) of the IBC, 2016, to mean that if the…

**Application:** Given that no resolution plan was submitted by the PRAs, including the promoter…

## Parties

- **Judges:** RAJESH S…; Ashok Kumar…
- **Advocates:** For Appli…; Shri. Vinod P.V.,…; +1 more

## Timeline

- **February 17, 2020 — CIRP Adm…**: The Tribunal admitted the application filed by M/s. Prayag Polytech Private Limited under…
- **August 3, 2020 — RP Appoi…**: The Committee of Creditors (CoC) in its second meeting appointed Mr. George Varkey as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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