# In the matter of Vasudev Ispat Private Limited C.P. (IB) No. 575-KB of 2017

> NCLT judgment dated 2018-12-07. Citation: TCN-2018-NCLT-00146. Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 7 Dec 2018
- **Citation:** TCN-2018-NCLT-00146
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasudev-ispat-private-limited-cp-ib-no-575-kb-of-2017-75ab5a80

## Summary

### Background

Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against Vasudev Ispat Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 15/02/2018. An Interim Resolution Professional (IRP) was appointed, and a Committee of Creditors (CoC) was formed. Despite inviting resolution plans, only one plan was received from Leasing Finance India Limited. PNB, holding 39.81% voting share, rejected the plan, leading to a request for liquidation.

## Facts

Punjab National Bank (PNB) initiated CIRP against Vasudev Ispat Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 15/02/2018. Pradip Kumar Goenka was appointed as the Interim Resolution Professional (IRP). A Committee of Creditors (CoC) was formed, consisting of IDBI Bank Ltd. (10.75% voting share), Invent Assets Reconstruction Pvt. Ltd. (49.39% voting share), Murli Vinimay Pvt. Ltd. (0.05% voting share), and PNB (39.81% voting share). Only one resolution plan was received from Leasing Finance India Limited. PNB rejected the plan due to a perceived lesser plan assignment compared to their claim. The RP filed a Final Progress Report on 25/10/2018, stating the inability to procure a resolution plan. The liquidation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should pass an order for liquidation of the Corporate Debtor due …

**Ratio:** Section 33 of the Insolvency and Bankruptcy Code, 2016 mandates liquidation if no

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**Reasoning:** The Adjudicating Authority noted that the CIRP period had expired, and no resolution plan

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**Interpretation:** Section 33 provides a clear directive for liquidation when the CIRP fails to

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**Application:** Given the expiration of the CIRP period and the absence of an approved

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## Parties

- **Judges:** Jinan…
- **Appellants:** Punjab National…
- **Respondents:** Vasudeb Ispat…

## Timeline

- **2018-02-15 — CIRP Admi…**: CIRP against Vasudev Ispat…
- **2018-10-25 — Final Progres…**: RP filed the Final Progress Report, stating…

## 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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