# In the matter of Pansy Constructions Private Limited

> NCLT judgment dated 2024-05-28. Citation: TCN-2024-NCLT-01281. The case involves an application filed under Section 33(2) read with Section 34 of the…

- **Court:** NCLT
- **Order date:** 28 May 2024
- **Citation:** TCN-2024-NCLT-01281
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pansy-constructions-private-limited-043f6695

## Summary

### Background

The case involves an application filed under Section 33(2) read with Section 34 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of liquidation proceedings for Pansy Construction Private Limited (Corporate Debtor). The application was filed by the Resolution Professional (RP), Mr. Virender Kumar Jain, based on the decision of the Committee of Creditors (CoC). The CIRP was initiated by Fun, N, Food Private Limited (Financial Creditor) under Section 7 of the Code. The Adjudicating Authority admitted the application on 27.09.2023 and declared a moratorium, appointing Mr. Jain as the Interim Resolution Professional (IRP). He was later confirmed as the RP by the CoC. The IRP made a public announcement on 04.10.2023, calling for creditors to submit their

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## Facts

Fun, N, Food Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against Pansy Construction Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority admitted the application on 27.09.2023 and declared a moratorium, appointing Mr. Virender Kumar Jain as the Interim Resolution Professional (IRP). Mr. Jain was later confirmed as the Resolution Professional (RP). A public announcement was made on 04.10.2023, with a deadline of 18.10.2023 for creditors to submit claims. The Committee of Creditors (CoC) was formed on 26.10.2023, consisting solely of the Operational Creditor. The CoC appointed the IRP as the RP on 26.10.2023. An application was filed under Section 22 of the Code, seeking confirmation and

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Pansy Construction Private …

**Ratio:** The commercial decision of the Committee of Creditors (CoC) is non-justiciable, and the

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**Reasoning:** The Hon'ble Supreme Court in the matter of K. Sashidhar Versus Indian Overseas Bank &

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**Interpretation:** The interpretation of the law is that the Adjudicating Authority should not

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**Application:** In this case, the CoC with 100% majority has passed the resolution seeking

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Virender Kumar…
- **Respondents:** Pansy Construction…; Varun Sharma &…
- **Advocates:** Nibruti…; Sohaib…

## Timeline

- **2023-09-27 — Admission of CIRP…**: The Adjudicating Authority admitted the application filed by Fun, N, Food Private Limited…
- **2023-10-04 — Public Annou…**: The IRP made a public announcement, calling for creditors to submit their claims by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(2) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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