# In the matter of Lalit Polyester Private Limited

> NCLT judgment dated 2024-01-11. Citation: TCN-2024-NCLT-03113. The case involves an application (IA-4617 of 2023) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 11 Jan 2024
- **Citation:** TCN-2024-NCLT-03113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lalit-polyester-private-limited-95312a8d

## Summary

### Background

The case involves an application (IA-4617 of 2023) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Lalit Polyester Private Limited. The CIRP was triggered by a petition filed by Punjab National Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The applicant, Nitin Om Kothari, was initially appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The CoC, in its 7th meeting, recommended the liquidation of the Corporate Debtor after determining that there was no chance of revival. The CoC then voted with 100% majority to proceed with the liquidation.

## Facts

Punjab National Bank initiated Corporate Insolvency Resolution Process (CIRP) against Lalit Polyester Private Limited by filing a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 05.01.2023. Nitin Om Kothari was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). Form G was issued inviting Expression of Interest (EoI) from prospective resolution applicants, with a deadline of 30.03.2023. The fourth meeting of the Committee of Creditors (CoC) revealed one Expression of Interest from Nakshatra Corporate Advisors Limited. The 7th CoC meeting recommended liquidation of Lalit Polyester Private Limited, as there was no chance of revival. The CoC voted with 100% majority

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Lalit Polyester Private Limited, …

**Ratio:** Section 33(2) of the Insolvency and Bankruptcy Code, 2016 allows for the liquidation of a

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**Reasoning:** The CoC, after considering the circumstances and the lack of a viable resolution plan,

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**Interpretation:** Section 33(2) provides the legal basis for initiating liquidation when

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**Application:** Given the CoC's decision and the absence of a resolution plan, the Tribunal

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Nitin Om K…
- **Respondents:** Lalit Polyester…; Punjab National…

## Timeline

- **2023-01-05 — CIRP Init…**: Tribunal admitted the petition filed by Punjab National Bank under Section 7 of the IBC,…
- **2023-03-10 — Form G Publ…**: Form G was published inviting Expression of Interest (EoI) from prospective resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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