# In the matter of PSL Limited

> NCLT judgment dated 2024-01-12. Citation: TCN-2024-NCLT-03101. The case involves an application filed under Regulation 31A(11) of the IBBI (Liquidation…

- **Court:** NCLT
- **Order date:** 12 Jan 2024
- **Citation:** TCN-2024-NCLT-03101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/psl-limited-6f33a92f

## Summary

### Background

The case involves an application filed under Regulation 31A(11) of the IBBI (Liquidation Process) Regulations, 2016, read with Rule 11 of the NCLT Rules, 2016, seeking the replacement of the existing liquidator, Nitin Jain, for PSL Limited, a company undergoing liquidation. The corporate debtor, PSL Limited, initiated CIRP due to its inability to discharge obligations to creditors. CIRP was initiated on 15.02.2019. The applicant was appointed as RP and subsequently as liquidator. The liquidation process faced challenges, including investigations by the Enforcement Directorate (ED) and legal proceedings before the High Court of Delhi. The liquidator sought exclusion of certain periods from the liquidation timeline and faced issues with the sale of assets due to

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## Facts

PSL Limited, incorporated on August 24, 1987, engaged in financial services, initiated CIRP under Section 10 of the Code due to its inability to meet creditor obligations. On February 15, 2019, the NCLT ordered the initiation of CIRP against PSL Limited and appointed an IRP. A CoC was formed on March 16, 2019. In the 5th CoC meeting on August 22, 2019, a resolution was passed with 88.12% voting share to replace the IRP and appoint the applicant, Nitin Jain, as the RP. On August 30, 2019, the NCLT formally designated the applicant as the RP. On January 15, 2020, the applicant filed IA No. 132 of 2020 to commence liquidation, which was ordered on September 11, 2020, with the applicant appointed as liquidator. The applicant issued a public announcement on September 15,

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## Issues and analysis

### Issue 1: Whether the application for replacement of the …

**Ratio:** Regulation 31A(11) of the IBBI (Liquidation Process) Regulations, 2016, allows for the

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**Reasoning:** The applicant, Nitin Jain, sought replacement due to personal reasons, and the SCC passed

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**Interpretation:** Regulation 31A(11) provides a mechanism for replacing a liquidator when

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**Application:** The court acknowledged the applicant's personal reasons and the SCC's

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Nitin…
- **Respondents:** PSL Lim…

## Timeline

- **1987-08-24 — Incorporation of PSL…**: PSL Limited was…
- **2019-02-15 — CIRP Init…**: NCLT ordered the initiation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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