# In the matter of Punj Lloyd Limited

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02570. ICICI Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02570
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/punj-lloyd-limited-aeec0be9

## Summary

### Background

ICICI Bank filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, bearing number IB-731(PB)/2018, for initiation of Corporate Insolvency Resolution Process (CIRP) against Punj Lloyd Limited. The application was admitted on 08.03.2019, initiating CIRP. The Resolution Professional was appointed on 22.05.2019. A final resolution plan was submitted by the consortium of Payard Investments Private Limited and Prudent ARC Limited on 21.01.2021, with subsequent addendums. The resolution plan was put to vote but failed, with only 8.06% voting in favor. The CoC recommended selling the Corporate Debtor as a going concern and suggested a scheme of arrangement under Section 230 of the Companies Act, 2013.

## Facts

ICICI Bank initiated CIRP against Punj Lloyd Limited under Section 7 of the IBC. The CIRP was initiated on 08.03.2019. Mr. Ashwini Mehra was appointed as the Resolution Professional on 22.05.2019. A resolution plan submitted by Payard Investments Private Limited and Prudent ARC Limited was voted on but failed, receiving only 8.06% of the votes. There were 1097 claims admitted, totaling ₹133,863,364,182. The CoC recommended selling the Corporate Debtor as a going concern and suggested a scheme of arrangement under Section 230 of the Companies Act, 2013. Approximately 3000 employees are working in the Corporate Debtor. The Resolution Professional apprised the CoC members that he is giving his consent to continue as the liquidator of the Corporate Debtor. The Applicant/RP

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## Issues and analysis

### Issue 1: Whether the application for liquidation of the corporate debtor, namely M/s Punj Lloyd 'as a going …

**Ratio:** Section 33(1) of the Insolvency and Bankruptcy Code, 2016, allows for the initiation of

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**Reasoning:** The resolution plan failed to receive the necessary votes from the CoC. The CoC

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**Interpretation:** Section 33(1) provides the legal basis for initiating liquidation when a

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**Application:** The resolution plan for Punj Lloyd failed, and the CoC recommended liquidation

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## Parties

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

## Timeline

- **2018-01-01 — Application…**: ICICI BANK filed an application under Section 7 of the Code, bearing number IB- 731…
- **2019-03-08 — CIRP Init…**: The application was admitted by this Tribunal on 08.03.2019 initiating CIRP against the…

## 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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