# In the matter of Purna Pharmaceuticals Pvt. Ltd.  CA(IB) 14-KOB-2020 alongwith CP(IB) No. 1234-KB-2018

> NCLT judgment dated 2020-01-22. Citation: TCN-2020-NCLT-02217. Union Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLT-02217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/purna-pharmaceuticals-pvt-ltd-caib-14-kob-2020-alongwith-cpib-no-1234-kb-2018-5c50f106

## Summary

### Background

Union Bank of India filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Purna Pharmaceuticals Private Ltd., seeking to initiate Corporate Insolvency Resolution Process (CIRP). The application was based on the Corporate Debtor's default in paying a financial debt of Rs. 20,75,00,594/-. The NCLT admitted the corporate debtor into CIRP on 03.10.2019 and appointed an Interim Resolution Professional (IRP). The IRP made a public announcement and called upon creditors to submit their claims. The IRP found that the registered office of the corporate debtor was completely burnt due to a fire in September 2018, and financial papers were unavailable. The CoC, consisting solely of Union Bank of India, initially did not confirm the

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## Facts

Union Bank of India, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Purna Pharmaceuticals Private Ltd., the Corporate Debtor, due to a default in paying a financial debt of Rs. 20,75,00,594/-. The NCLT admitted the application on 03.10.2019 and initiated the Corporate Insolvency Resolution Process (CIRP). Mr. Kannan Tiruvengadam was appointed as the Interim Resolution Professional (IRP). The IRP made a public announcement on 06.10.2019 and 10.10.2019, calling upon creditors to submit their claims. The IRP discovered that the Corporate Debtor's registered office had been destroyed by a fire in September 2018, making it impossible to access financial records. The Committee of Creditors (CoC) consisted

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Purna Pharmaceuticals Private Ltd., should be liquidated due to the …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code (I&B Code) allows for the

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**Reasoning:** The court reasoned that the CoC, being the final authority to decide on the resolution

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**Interpretation:** Section 33 of the I&B Code provides the legal basis for liquidation when

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**Application:** In this case, the CoC, consisting of Union Bank of India, decided not to

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Union Bank of…
- **Respondents:** Purna Pharmaceutic…

## Timeline

- **2018-09-01 — Fire at Corporate…**: A heavy fire broke out at the registered office of Purna Pharmaceuticals Private Ltd.,…
- **2019-10-03 — Admission in…**: The NCLT admitted the…

## 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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