# In the matter of Punj Lloyd IA (I.B.C-1603(PB)-2021 in CP (IB) - 731(PB)-2018

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02573. ICICI Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Punj Lloyd…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02573
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punj-lloyd-ia-ibc-1603pb-2021-in-cp-ib-731pb-2018-11825eb7

## Summary

### Background

ICICI Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Punj Lloyd Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 08.03.2019, and a Resolution Professional was appointed on 22.05.2019. Despite attempts to find a viable resolution plan, including inviting potential resolution applicants and amending submitted plans, the resolution plan was ultimately rejected by the Committee of Creditors (CoC).

## Facts

ICICI Bank Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Punj Lloyd Limited. The application was admitted on 08.03.2019, leading to the commencement of CIRP. Mr. Ashwini Mehra was appointed as the Resolution Professional on 22.05.2019. A Request for Resolution Plan (RFRP) was issued, and initially, 10 potential resolution applicants expressed interest, followed by three more. A final resolution plan was submitted by Payard Investments Private Limited and Prudent ARC Limited on 21.01.2021, with subsequent addendums. The resolution plan was put to vote on 16.02.2021 but failed to secure the required votes, with only 8.06% voting in favor, 79.53% against, and

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the Corporate Debtor, Punj Lloyd Limited, as a going …

**Ratio:** The court has the power to order the liquidation of a corporate debtor under Section

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**Reasoning:** The resolution plan failed to receive the necessary votes from the CoC, indicating a lack

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**Interpretation:** Section 33(1) of the IBC allows for liquidation when a resolution plan fails.

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**Application:** Given the failed resolution plan and the CoC's recommendation, the court

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## Parties

- **Judges:** SH. RAMALINGAM…; Sh. Avinash K.…
- **Appellants:** ICICI Bank…
- **Respondents:** Punj L…

## Timeline

- **2018-01-01 — CP (IB)…**: CP (IB) – 731(PB) /2018…
- **2019-03-08 — CIRP Init…**: CIRP was initiated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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