# In the matter of Pancard Clubs Limited

> NCLT judgment dated 2023-11-01. Citation: TCN-2023-NCLT-00894. This case involves multiple applications (IA 3850/2023, IA 4043/2023, IA 4047/2023, INVP…

- **Court:** NCLT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLT-00894
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pancard-clubs-limited-629126f9

## Summary

### Background

This case involves multiple applications (IA 3850/2023, IA 4043/2023, IA 4047/2023, INVP 40/2023, INVP 42/2023, INVP 43/2023) filed in the matter of Corporate Insolvency Resolution Process (CIRP) of Pancard Clubs Limited. IA 3850/2023 was filed by Ashdan Properties Private Limited, a prospective resolution applicant, seeking directions to the Resolution Professional regarding the evaluation and voting on resolution plans. The applicant raised concerns about the evaluation process, alleged misrepresentation of data, and lack of transparency in the CIRP. Other applications were filed by intervenors, including investors and the Committee of Creditors (CoC), raising objections and concerns about the resolution process.

## Facts

1. Ashdan Properties Private Limited filed IA 3850/2023 seeking directions to the Resolution Professional (RP) in the CIRP of Pancard Clubs Limited.
2. Ashdan Properties alleged misrepresentation of data in its resolution plan, delegation of essential functions by the RP, and lack of transparency in the CIRP.
3. The RP sought clarifications on the legal compliances and financial proposal of Ashdan's resolution plan.
4. Ashdan submitted a clarificatory note and an addendum to its resolution plan.
5. The CoC rejected Ashdan's addendum and approved another resolution plan.
6. Ashdan alleged that the CoC's decision was influenced by non-compliance issues and that the voting process was framed improperly.
7. Investors Action Forum Charitable Trust and others filed IA 4043/2023,

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) properly discharged their duties in evaluating the …

**Ratio:** The RP has a statutory duty to conduct the CIRP in a fair and transparent manner,

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**Reasoning:** The NCLT found that there were concerns regarding the evaluation process, including

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**Interpretation:** The RP's role is critical in ensuring the integrity of the CIRP. The RP must

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**Application:** In this case, the NCLT directed the RP to allow all shortlisted resolution

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Ashdan Properties…
- **Respondents:** Pancard Clubs…; Rajesh Sureshchand…
- **Advocates:** Vikram Na…; Devesh Ju…; +4 more

## Timeline

- **2018-01-01 — Initiation…**: C.P.(IB) No. 4578…
- **2023-04-14 — Submission of…**: Ashdan Properties Private Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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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/pancard-clubs-limited-629126f9