# In the matter of Prime Retail India Limited IA (IB)No. 961-KB-2021 in CP (IB) No. 1127-KB-2019

> NCLT judgment dated 2022-04-21. Citation: TCN-2022-NCLT-03141. The Corporate Insolvency Resolution Process (CIRP) of Prime Retail India Limited was initiated…

- **Court:** NCLT
- **Order date:** 21 Apr 2022
- **Citation:** TCN-2022-NCLT-03141
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prime-retail-india-limited-ia-ibno-961-kb-2021-in-cp-ib-no-1127-kb-2019-29a9e7c6

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) of Prime Retail India Limited was initiated following an order of admission on 27.08.2019, based on an application filed by Swatch Group (India) Limited, the Operational Creditor. A Resolution Plan submitted by BMS Commercial Private Limited was approved by the Committee of Creditors (CoC) with an 89.21% voting share on February 13, 2020. An Implementation & Monitoring Committee (IMC) was formed to oversee the plan's implementation. The Successful Resolution Applicant (SRA) faced difficulties in making payments as per the plan, citing the pandemic and other issues. The IMC recommended liquidation due to non-payment, but the SRA proposed selling non-business assets to meet payment obligations, for which the IMC

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Prime Retail India Limited was initiated on 27.08.2019, based on an application by Swatch Group (India) Limited, an Operational Creditor. BMS Commercial Private Limited's resolution plan was approved by the CoC on 13.02.2020 with 89.21% voting share. An Implementation & Monitoring Committee (IMC) was formed. The SRA, BMS Commercial Private Limited, faced payment difficulties, citing the pandemic. The IMC recommended liquidation due to non-payment. The SRA proposed selling non-business assets to meet obligations, but the IMC allegedly withheld the NOC required for the sale. The SRA filed an application under section 60(5) of the IBC seeking directions for the NOC issuance. The IMC extended the time for payment

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## Issues and analysis

### Issue 1: Whether the respondents (financial creditors and IMC) were justified in withholding the …

**Ratio:** The ratio is based on the principle that all parties involved in the resolution process,

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**Reasoning:** The court reasoned that the SRA was unable to make the requisite payments due to the IMC

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**Interpretation:** The interpretation is that the financial creditors and the IMC have a

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**Application:** The court applied the ratio to the facts by directing the financial creditors

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** BMS Commercial…
- **Respondents:** Prime Retail…; Kamalesh Kumar…

## Timeline

- **2019-08-27 — CIRP Init…**: Corporate Insolvency Resolution Process (‘CIRP') of Prime Retail India Limited was…
- **2020-02-13 — Resolution Plan…**: The CoC approved the Resolution Plan submitted by BMS Commercial Private Limited with an…

## 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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