# In the matter of PSL Ltd. IA/391(AHM)2021 in CP (IB) 37 of 2017

> NCLT judgment dated 2021-09-08. Citation: TCN-2021-NCLT-01153. The case pertains to the liquidation of PSL Limited, initiated after CIRP failed. The…

- **Court:** NCLT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLT-01153
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/psl-ltd-ia391ahm2021-in-cp-ib-37-of-2017-3ffdf881

## Summary

### Background

The case pertains to the liquidation of PSL Limited, initiated after CIRP failed. The liquidator sought approval for the sale of the Corporate Debtor as a going concern. The Corporate Debtor had filed an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 for initiation of CIRP, as it was unable to pay debts to its creditors, which was admitted by this Adjudicating Authority vide its order dated 15.02.2019. The COC passed a resolution for liquidation with 95.63% votes. The Adjudicating Authority directed the Liquidator to first try to sell the Corporate Debtor as a going concern. The Liquidator published sale notices and scheduled E-auctions, but faced challenges including summons from the Directorate of Enforcement. The Hon'ble Delhi High Court

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## Facts

The Corporate Debtor, PSL Limited, underwent CIRP, which failed, leading to liquidation. The Liquidator, Nitin Jain, sought approval for the sale of the Corporate Debtor as a going concern. The Corporate Debtor had filed an application under Section 10 of the IBC, 2016, for initiating CIRP due to its inability to pay debts, which was admitted on 15.02.2019. The COC approved liquidation with 95.63% votes. The Adjudicating Authority directed the Liquidator to attempt selling the Corporate Debtor as a going concern. The Liquidator published sale notices on 27.11.2020 and scheduled E-auctions, but faced summons from the Directorate of Enforcement regarding a Rs. 300 crore demand loan. The Hon'ble Delhi High Court allowed the sale to proceed. The stakeholders' consultation

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## Issues and analysis

### Issue 1: Whether the sale of the Corporate Debtor as a going concern under liquidation process can be …

**Ratio:** The sale of a Corporate Debtor as a going concern during liquidation is permissible under

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**Reasoning:** The Adjudicating Authority considered the submissions made by the Liquidator, the

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**Interpretation:** The IBC, 2016, aims to revive and continue the operations of a Corporate

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**Application:** The Adjudicating Authority approved the sale of the Corporate Debtor as a going

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Nitin…
- **Respondents:** PSL Lim…; Lucky Holdings…
- **Advocates:** Gaurav…; Aditya…; +7 more

## Timeline

- **2019-02-15 — Admission of CIRP…**: The Adjudicating Authority admitted the application filed by the Corporate Debtor under…
- **2020-06-19 — COC Resolution for…**: The COC passed a resolution for liquidation of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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