# In the matter of PSL Ltd. IA No. 132-2020 in CP (IB) No. 37-10-NCLT-AHM-2017

> NCLT judgment dated 2020-09-11. Citation: TCN-2020-NCLT-00645. The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 11 Sept 2020
- **Citation:** TCN-2020-NCLT-00645
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/psl-ltd-ia-no-132-2020-in-cp-ib-no-37-10-nclt-ahm-2017-1bc1cc81

## Summary

### Background

The case pertains to an application filed under Section 33 of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of liquidation proceedings for the Corporate Debtor, PSL Limited. The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) on 2019-02-15. Mr. Nilesh Sharma was initially appointed as the Interim Resolution Professional (IRP), but was later replaced by Mr. Nitin Jain as the Resolution Professional (RP). The CIRP was conducted, and multiple attempts were made to invite Expressions of Interest (EoI), but no EoI/RP was received. The Committee of Creditors (CoC) ultimately resolved with 93.43% voting to proceed with the liquidation of the Corporate Debtor.

## Facts

Mr. PSL Limited, the Corporate Debtor, underwent Corporate Insolvency Resolution Process (CIRP) after being admitted by the Adjudicating Authority on 2019-02-15. Initially, Mr. Nilesh Sharma was appointed as the Interim Resolution Professional (IRP), but later, Mr. Nitin Jain replaced him as the Resolution Professional (RP). The RP conducted the CIRP, fixing 2020-01-03 as the last date for inviting Expression of Interest (EoI). Despite conducting the EoI process four times, no EoI/RP was received. In the 10th meeting of the Committee of Creditors (CoC) held on 2020-01-06, it was noted that no EoI/RP had been received, leading to a resolution with 93.43% voting in favor of liquidation. The CoC approved Mr. Nitin Jain as the Liquidator and authorized him to file an

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should approve the resolution passed by the Committee of …

**Ratio:** Section 33(1)(a) of the Insolvency & Bankruptcy Code, 2016, allows the Adjudicating

…

**Reasoning:** The Adjudicating Authority considered the fact that the CIRP had been conducted for over

…

**Interpretation:** Section 33(1)(a) provides a mechanism for liquidation when the CIRP fails to

…

**Application:** In this case, the CIRP had failed despite multiple attempts to find a

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Nitin Jain…
- **Respondents:** PSL Lim…; Edelweiss Assets…

## Timeline

- **2019-02-15 — Admission in…**: The Adjudicating Authority admitted the Corporate Debtor, PSL Limited, into the Corporate…
- **N/A — Appointment…**: Mr. Nilesh Sharma was appointed as the…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/psl-ltd-ia-no-132-2020-in-cp-ib-no-37-10-nclt-ahm-2017-1bc1cc81