# In the matter of Peekay Mediequip Limited IA(BC)-1506(CHE)-2022 in IBA-724-2019

> NCLT judgment dated 2023-05-02. Citation: TCN-2023-NCLT-03515. The Corporate Insolvency Resolution Process (CIRP) was initiated for Peekay Mediequip Limited…

- **Court:** NCLT
- **Order date:** 2 May 2023
- **Citation:** TCN-2023-NCLT-03515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/peekay-mediequip-limited-iabc-1506che-2022-in-iba-724-2019-94d95620

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) was initiated for Peekay Mediequip Limited based on an application by Mr. K.R. Sundaresan, a Financial Creditor, under Section 7 of the IBC, 2016. Mr. R. Raghavendran was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional. The CIRP involved several Committee of Creditors (CoC) meetings, expressions of interest, and revisions of resolution plans. The resolution plan submitted by Mr. G. Shankar was approved by the CoC with 76.60% voting share.

## Facts

Peekay Mediequip Limited, a MSME unit manufacturing hypodermic needles and syringes, underwent CIRP initiated by a financial creditor, Mr. K.R. Sundaresan. Mr. R. Raghavendran was appointed as the Resolution Professional. The CIRP timeline included public announcements, CoC formation, and multiple CoC meetings to discuss and revise resolution plans. Mr. G. Shankar, the ex-promoter, submitted a resolution plan that was approved by the CoC with 76.60% voting share. The plan involves infusion of funds through equity and unsecured loans, with a detailed payout structure for various creditors. The resolution plan also includes waivers and concessions sought by the Resolution Applicant, some of which were granted subject to certain conditions. The fair value of the company

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## Issues and analysis

### Issue 1: Whether the resolution plan complies with the …

**Ratio:** The resolution plan must provide for the payment of insolvency resolution process costs,

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**Reasoning:** The Adjudicating Authority is duty-bound to examine the Resolution Plan within the

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**Interpretation:** Section 30(2) of the IBC outlines the mandatory requirements that a resolution

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**Application:** The Adjudicating Authority verified that the resolution plan complied with

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## Parties

- **Judges:** Sh. Ashok Kumar…; SAMEER…
- **Appellants:** R. Raghav…
- **Respondents:** Peekay Mediequip…

## Timeline

- **2019-08-13 — Initiation…**: CIRP initiated by the Adjudicating Authority based on an application filed by Mr. K.R.…
- **2019-08-16 — Public Annou…**: Public announcement regarding the initiation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(6) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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