# In the matter of Pellet Energy Systems Private Limited

> NCLT judgment dated 2024-07-03. Citation: TCN-2024-NCLT-01079. The case involves an application for the dissolution of the Corporate Debtor, Pellet Energy…

- **Court:** NCLT
- **Order date:** 3 Jul 2024
- **Citation:** TCN-2024-NCLT-01079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pellet-energy-systems-private-limited-8154bd89

## Summary

### Background

The case involves an application for the dissolution of the Corporate Debtor, Pellet Energy Systems Private Limited, which is undergoing liquidation. The liquidation process was initiated following the failure of a resolution plan. The Adjudicating Authority admitted the petition filed by Oriental Bank of Commerce (now merged with Punjab National Bank) on 20.07.2018 and appointed Ms. Reshma Mittal as the Interim Resolution Professional (IRP), who was later confirmed as the Resolution Professional (RP). Several resolution plans were submitted but not implemented, leading to the liquidation order on 26.08.2022. The liquidator sold the Corporate Debtor as a going concern to M/s Krishna Constellation Pvt Ltd. The liquidator filed a final report and sought closure of the

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## Facts

On 20.07.2018, the Adjudicating Authority admitted a petition filed by Oriental Bank of Commerce (now merged with Punjab National Bank) against Pellet Energy Systems Private Limited, appointing Ms. Reshma Mittal as the Interim Resolution Professional (IRP). Ms. Mittal was later confirmed as the Resolution Professional (RP). Several resolution plans failed, leading to a liquidation order on 26.08.2022. Ms. Reshma Mittal was appointed as the Liquidator. The Corporate Debtor was sold as a going concern to M/s Krishna Constellation Pvt Ltd for INR 27.05 crores, which was 40% above the reserved price. The Liquidator filed a final report and sought closure of the liquidation process. The Liquidator also assigned 'Not Readily Realizable Assets' (NRRA), related to avoidance

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## Issues and analysis

### Issue 1: Whether the application for closure of liquidation can be allowed while avoidance proceedings under …

**Ratio:** Liquidation can be closed even while proceedings for avoidance of transactions are

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**Reasoning:** The court relied on Regulations 37A, 44(1), and 44A of the Liquidation Process

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**Interpretation:** Regulation 44(1) allows for the completion of liquidation within a year,

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**Application:** The court found that the liquidator had provided sufficient clarification and

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Respondents:** Pellet Energy…

## Timeline

- **2018-07-20 — Admission…**: Adjudicating Authority admitted the petition filed by Oriental Bank of Commerce against…
- **2018-08-17 — Confirmatio…**: Ms. Reshma Mittal was confirmed as the Resolution Professional (RP) in the first meeting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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