# 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-02927. L&T Finance Limited, a financial creditor of PMT Machines Ltd and a member of the Committee of…

- **Court:** NCLT
- **Order date:** 2 May 2022
- **Citation:** TCN-2022-NCLT-02927
- **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-ae189f21

## Summary

### Background

L&T Finance Limited, a financial creditor of PMT Machines Ltd and a member of the Committee of Creditors (CoC) with a 10.44% voting share, filed IA 1783/2021 and IA 2048/2021 challenging the Resolution Professional's computation of liquidation value and the CoC's decision regarding the distribution of proceeds under the approved Resolution Plan. L&T Finance Limited had voted in favor of the Resolution Plan on 09.08.2021, which was approved with 91.46% of the total voting share of the CoC. The applicant's grievance was that Section 30(2) of the IBC, read with Sections 52 and 53, was ignored by the Resolution Professional. The applicant sought to be treated at par with the first charge holder regarding the distribution mechanism.

## Facts

L&T Finance Limited, a financial creditor of PMT Machines Ltd, filed IA 1783/2021 on 03.08.2021 and IA 2048/2021 on 31.08.2021. L&T Finance Limited is a member of the CoC with a 10.44% voting share and an admitted claim of Rs.51.28 crore. As per the Resolution Plan approved by the CoC, the applicant would receive Rs.5.40 crore. The IA 1783/2021 was filed before the closure of the e-voting window for the approval of the Resolution Plan. The applicant challenged the Resolution Professional's computation of liquidation value and the CoC's decision at its 29th meeting regarding the distribution of proceeds. The Resolution Plan was approved with 91.46% of the total voting share of the CoC. The applicant's fundamental grievance was that Section 30(2) of the IBC, read

…

## Issues and analysis

### Issue 1: Whether the Applicant, having voted in favor of the Resolution Plan, can challenge the distribution …

**Ratio:** The principle of estoppel applies, preventing a party from challenging a resolution plan

…

**Reasoning:** The Hon'ble NCLAT has held that a party cannot question a resolution plan after choosing

…

**Interpretation:** The principle of estoppel prevents a party from contradicting its previous

…

**Application:** L&T Finance Limited voted in favor of the Resolution Plan and is therefore

…

## Parties

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

## Timeline

- **2018-01-01 — C.P.(IB)-2469…**: The case was initiated…
- **2019-03-01 — Liquidation Value…**: The liquidation value of the…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pmt-machines-ltd-ia-1783-2048-2021-in-cpib-2469-mb-2018-ae189f21