# In the matter of PMT Machines Ltd. IA 1783 & 2048-2021
in C.P.(IB)-2469-MB-2018

> NCLT judgment dated 2022-05-02. Citation: TCN-2022-NCLT-02932. L&T Finance Limited, a financial creditor of PMT Machines Ltd (Corporate Debtor) and a member…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02932
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pmt-machines-ltd-ia-1783-2048-2021-in-cpib-2469-mb-2018-a5d3ed22

## Summary

### Background

L&T Finance Limited, a financial creditor of PMT Machines Ltd (Corporate Debtor) and a member of the Committee of Creditors (CoC) with 10.44% voting share, filed IA 1783/2021 challenging the Resolution Professional's computation of liquidation value and the CoC's decision regarding the distribution of proceeds from the Resolution Plan. L&T Finance Limited also filed IA 2048/2021 with similar reliefs after having voted in favor of the Resolution Plan. The applicant's grievance stems from the alleged ignorance of Section 30(2) of the IBC read with Sections 52 and 53, arguing for parity with first charge holders in the distribution mechanism.

## Facts

L&T Finance Limited, a financial creditor with a 10.44% voting share in the CoC of PMT Machines Ltd, filed IA 1783/2021 challenging the Resolution Professional's computation of liquidation value and the CoC's decision regarding distribution of proceeds. The application was filed before the closure of the e-voting window for the approval of the Resolution Plan. Subsequently, L&T Finance Limited voted in favor of the Resolution Plan and then filed IA 2048/2021 seeking the same reliefs as IA 1783/2021. The applicant argued that Section 30(2) of the IBC, read with Sections 52 and 53, was ignored, and they should be treated at par with first charge holders. The Resolution Plan was approved with 91.46% of the total voting share of the CoC. The liquidation value was

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## Issues and analysis

### Issue 1: Whether the objections raised by the Applicant through the present Applications are misconceived …

**Ratio:** The commercial wisdom of the Committee of Creditors (CoC) in approving a resolution plan

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**Reasoning:** The court reasoned that the objections were misconceived because the applicant, L&T

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**Interpretation:** This means that the court should not interfere with the commercial decisions of

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**Application:** The court applied this principle to the present case, finding that the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** L&T Finance…
- **Respondents:** PMT Machine…

## Timeline

- **2018-01-01 — C.P.(IB)-2469…**: Case initiated under…
- **2021-08-03 — IA 1783/202…**: L&T Finance Limited filed IA 1783/2021 challenging the Resolution Professional's…

## 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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