# In the matter of P K S Limited I.A. (IB) 781-KB-2021 in C.P. (IB) No. 980-KB-2018

> NCLT judgment dated 2022-02-16. Citation: TCN-2022-NCLT-04104. The case involves an application under Section 27 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 16 Feb 2022
- **Citation:** TCN-2022-NCLT-04104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-k-s-limited-ia-ib-781-kb-2021-in-cp-ib-no-980-kb-2018-58db5751

## Summary

### Background

The case involves an application under Section 27 of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the NCLT Rules, 2016, concerning the replacement of the Resolution Professional (RP) for PKS Limited. Union Bank of India, the financial creditor, filed the application seeking the appointment of Mr. Jai Narayan Gupta as the new RP, replacing Mr. Shashi Agarwal. Initially, Mr. Pinaki Sarkar was appointed as IRP, followed by Mr. Kanakabha Roy, who was later removed. The suspended board of directors filed an application alleging biased decisions against Mr. Kanakabha Roy. The CoC passed a resolution to remove Mr. Shashi Agarwal, with Mr. Jai Narayan Gupta consenting to the appointment.

## Facts

Union Bank of India initiated an application to replace the Resolution Professional (RP) for PKS Limited. Initially, Mr. Pinaki Sarkar was appointed as Interim Resolution Professional (IRP), but he withdrew. Subsequently, Mr. Kanakabha Roy was appointed as IRP and later confirmed as RP, but he was removed following an application by the Suspended Board alleging biased decisions. Mr. Shashi Agarwal then became the RP. Union Bank of India, as the applicant, proposed Mr. Jai Narayan Gupta as the new RP. The CoC passed a resolution with 89.44% votes to remove Mr. Shashi Agarwal. Mr. Gupta consented to the appointment. However, concerns arose regarding Mr. Gupta's conduct, specifically the circulation of derogatory remarks about legal professionals in a WhatsApp group. The

…

## Issues and analysis

### Issue 1: Whether the appointment of Mr. Jai Narayan Gupta as the Resolution Professional is appropriate …

**Ratio:** The integrity and impartiality of the Resolution Professional are paramount to ensure a

…

**Reasoning:** The court found that Mr. Jai Narayan Gupta had circulated derogatory remarks about legal

…

**Interpretation:** The court interpreted that the RP's role requires the highest standards of

…

**Application:** Given Mr. Gupta's conduct, the court determined that his appointment as RP

…

## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** Union Bank of…
- **Respondents:** P K S Li…; PKS Lim…

## Timeline

- **2019-08-08 — Initial IRP Ap…**: Mr. Pinaki Sarkar was initially appointed as…
- **2019-12-03 — Replacement…**: Mr. Kanakabha Roy was appointed as…

---

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-division-bench-court-i-chenn/p-k-s-limited-ia-ib-781-kb-2021-in-cp-ib-no-980-kb-2018-58db5751