# In the matter of P K S Limited I.A.(IB) 781-KB-2021
In C.P (1B) No.980-KB-2018

> NCLT judgment dated 2022-02-16. Citation: TCN-2022-NCLT-04105. 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-04105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-k-s-limited-iaib-781-kb-2021-in-cp-1b-no980-kb-2018-041a48c8

## Summary

### Background

The case involves an application under Section 27 of the Insolvency and Bankruptcy Code, 2016, regarding the corporate insolvency resolution process (CIRP) of PKS Limited. The primary issue is the replacement of the Resolution Professional (RP). Initially, Mr. Pinaki Sarkar was appointed as IRP, followed by Mr. Kanakabha Roy, who was later removed. Union Bank of India, the financial creditor, sought the appointment of Mr. Jai Narayan Gupta as the new RP. However, objections were raised regarding Mr. Gupta's conduct and alleged derogatory remarks.

## Facts

Union Bank of India initiated CIRP against PKS Limited. Mr. Pinaki Sarkar was initially appointed as IRP, followed by Mr. Kanakabha Roy. Mr. Roy was later removed due to allegations of biased decisions. Union Bank of India proposed Mr. Jai Narayan Gupta as the new RP, which was supported by a CoC resolution. However, the suspended Board of Directors of PKS Limited opposed Mr. Gupta's appointment, alleging that he had circulated derogatory remarks about the legal profession and the judiciary. The Adjudicating Authority considered WhatsApp messages allegedly circulated by Mr. Gupta. Mr. Shashi Agarwal, the current RP, expressed his disinterest in continuing in the role. Mr. Kanakabha Roy was alleged to be an employee of Union Bank of India and controlled by Respondent

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## Issues and analysis

### Issue 1: Whether the appointment of Mr. Jai Narayan Gupta as the Resolution Professional for PKS Limited …

**Ratio:** The Adjudicating Authority has the discretion to approve or reject the appointment of a

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**Reasoning:** The court considered the objections raised against Mr. Gupta, including allegations of

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**Interpretation:** The Adjudicating Authority interpreted the relevant provisions of the

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**Application:** Based on the specific facts and circumstances, including the alleged derogatory

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Union Bank of…
- **Respondents:** P K S Li…
- **Advocates:** Joy S…; Jishnu Cho…; +6 more

## Timeline

- **2019-08-08 — Initial IRP Ap…**: Mr. Pinaki Sarkar was initially appointed as…
- **2019-12-03 — Replacement…**: Mr. Kanakabha Roy was appointed to replace the earlier IRP due to the voting share of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 27 — Replacement of resolution professional by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-27)

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