# In the matter of Payism Technologies India Private Limited

> NCLT judgment dated 2024-02-06. Citation: TCN-2024-NCLT-02753. The case involves an application filed by the Resolution Professional (RP) of Payism…

- **Court:** NCLT
- **Order date:** 6 Feb 2024
- **Citation:** TCN-2024-NCLT-02753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/payism-technologies-india-private-limited-5ddb7a12

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Payism Technologies India Private Limited, referred to as the 'Corporate Debtor/CD', under Section 33(1)(a) of the Insolvency and Bankruptcy Code (IBC), 2016, read with relevant NCLT Rules. The RP sought liquidation of the Corporate Debtor due to the expiration of the CIRP period and the absence of any resolution plans. The Corporate Debtor's CIRP was initiated on 17.06.2022, and the RP was appointed. The RP made public announcements and constituted a Committee of Creditors (CoC). However, the CoC did not cooperate, failed to disburse fees, and did not approve expenses. The maximum period for CIRP completion expired on 14.12.2022, and no resolution plans were received.

## Facts

Payism Technologies India Private Limited ('Corporate Debtor') underwent Corporate Insolvency Resolution Process (CIRP) initiated on 17.06.2022. The Resolution Professional (RP) was appointed and made public announcements, inviting claims from creditors. The Committee of Creditors (CoC) was constituted with two financial creditors: Mr. Nune Chiranjeevi Nagaraju (59.89% voting share) and Mr. Nune Kiran Kumar (40.11% voting share). The CoC approved the CIRP budget and the RP's remuneration in the first meeting. The RP invited Expressions of Interest (EOI) but received none. The CIRP period of 180 days was about to expire on 14.12.2022. The CoC did not disburse the RP's fees, only approving Rs. 1,50,000 for the IRP period. The CoC sought information on recoveries but was

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33(1)(a) of the IBC, …

**Ratio:** Section 33(1)(a) of the IBC, 2016 allows the Adjudicating Authority to pass an order

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**Reasoning:** The court reasoned that the maximum period for the completion of the CIRP had already

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**Interpretation:** Section 33(1)(a) is interpreted to mean that if the CIRP does not result in a

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**Application:** The court applied Section 33(1)(a) to the facts of the case, noting that the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Nune Chiranjeevi…
- **Respondents:** Payism Technologie…; Payism Technologie…

## Timeline

- **2013-11-26 — Incorporation of…**: Payism Technologies India…
- **2022-06-17 — CIRP Init…**: CIRP initiated for the Corporate Debtor;…

## 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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