# In the matter of PSL Limited CP (IB) No.37-10-NCLT-AHM-2017

> NCLT judgment dated 2019-02-15. Citation: TCN-2019-NCLT-04830. The case pertains to an application filed by PSL Limited, the Corporate Applicant/Debtor, under…

- **Court:** NCLT
- **Order date:** 15 Feb 2019
- **Citation:** TCN-2019-NCLT-04830
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/psl-limited-cp-ib-no37-10-nclt-ahm-2017-a45ba0cc

## Summary

### Background

The case pertains to an application filed by PSL Limited, the Corporate Applicant/Debtor, under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). PSL Limited, engaged in the manufacturing of HSAW pipes, had availed financial assistance from numerous banks and financial institutions but defaulted on its debt obligations. The application was filed before the National Company Law Tribunal (NCLT), Ahmedabad Bench. An intervener, Jotun India Private Limited, had previously obtained a stay on the proceedings from the Bombay High Court, which was later vacated. Edelweiss Asset Reconstruction Company Limited, a financial creditor, filed an application objecting to the appointment of the proposed

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## Facts

PSL Limited, a company engaged in the manufacturing of HSAW pipes, availed financial assistance from 23 banks. The company defaulted on its debt obligations, with an outstanding amount of Rs. 3862.74 Lakhs as of March 31, 2017. PSL Limited filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The company's registered office is located in Kachigam, Daman & Diu. The company was initially incorporated as 'PSL Holdings Private Ltd.' and later became 'PSL Ltd.' after a merger and conversion. The Board of Directors passed a resolution on May 9, 2017, proposing the initiation of CIRP. Mr. Ashok Punj, Managing Director, was authorized to file the application. Edelweiss

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## Issues and analysis

### Issue 1: Whether the application filed by the Corporate Applicant/Debtor under Section 10 of the Insolvency …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016, read with Rule 7 of the

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**Reasoning:** The NCLT observed that the application was filed in conformity with the prescribed

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**Interpretation:** Section 10 allows a corporate debtor to initiate CIRP if it has committed a

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**Application:** The NCLT found that the application filed by PSL Limited was complete and met

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Respondents:** PSL L…; Edelweiss Assets…

## Timeline

- **2017-05-09 — Board Reso…**: Board of Directors of PSL Limited passed a resolution proposing initiation of Corporate…
- **2017-05-27 — Insolvency Petition…**: CP (IB) No.37/2017…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(5) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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