# In the matter of Pellet-Energy Systems Pvt. Ltd. (IB)-76(PB)-2018

> NCLT judgment dated 2022-08-26. Citation: TCN-2022-NCLT-01261. The case involves multiple applications (IA-2479/2021, IA-5985/2021, IA-1151/2022,…

- **Court:** NCLT
- **Order date:** 26 Aug 2022
- **Citation:** TCN-2022-NCLT-01261
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pellet-energy-systems-pvt-ltd-ib-76pb-2018-36e0e5b3

## Summary

### Background

The case involves multiple applications (IA-2479/2021, IA-5985/2021, IA-1151/2022, IA-2457/2020) filed under the Insolvency and Bankruptcy Code (IBC) and NCLT Rules. IA-2479/2021 was filed by the Chairperson of the Monitoring Committee seeking liquidation of the Corporate Debtor as a going concern under Section 33 of the IBC. A resolution plan had been previously approved but was not implemented by the Resolution Applicants, leading to its rejection. IA-1151/2022 was filed by Bharat Sharma, a joint proponent of the earlier resolution plan, seeking directions for the Resolution Professional to convene a meeting of the Committee of Creditors. IA-5985/2021 was filed by a prospective resolution applicant seeking approval of a resolution plan and extension of the CIRP

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## Facts

Oriental Bank of Commerce initiated proceedings against M/s. Pellet Energy Systems Pvt Ltd. A resolution plan was approved but not implemented by Respondent Nos. 2 and 3. The Tribunal rejected the plan on 2021-07-01. Ms. Reshma Mittal, Chairperson of the Monitoring Committee, filed IA-2479/2021 seeking liquidation under Section 33 of the IBC. The Monitoring Committee decided on 2021-05-29 to liquidate the Corporate Debtor as a going concern. Bharat Sharma, a joint proponent of the earlier plan, filed IA-1151/2022 seeking directions to convene a meeting of the Committee of Creditors. A prospective resolution applicant filed IA-5985/2021 seeking approval of a new resolution plan and extension of the CIRP period. Ms. Reshma Mittal failed to inform the Tribunal about the

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor under Section 33 of the IBC should …

**Ratio:** Section 33(3) of the IBC allows for liquidation if a resolution plan approved by the

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**Reasoning:** The court reasoned that the previously approved resolution plan was not implemented by

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**Interpretation:** Section 33(3) provides a mechanism for initiating liquidation proceedings when

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**Application:** The court applied Section 33(3) to the facts of the case, where the resolution

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s. Pellet…

## Timeline

- **2021-07-01 — Tribunal rejects…**: The Tribunal rejected the resolution…
- **2021-05-29 — Monitoring Committee…**: The Monitoring Committee decided to liquidate…

## 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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