# In the matter of Purna Pharmaceuticals Private Limited

> NCLT judgment dated 2023-07-10. Citation: TCN-2023-NCLT-02590. The case involves an application filed under Section 54(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 10 Jul 2023
- **Citation:** TCN-2023-NCLT-02590
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purna-pharmaceuticals-private-limited-9efbce76

## Summary

### Background

The case involves an application filed under Section 54(2) of the Insolvency and Bankruptcy Code, 2016, read with regulation 45(3) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, by the Liquidator of Purna Pharmaceuticals Private Limited, seeking dissolution of the Corporate Debtor. The Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) on October 3, 2019, and Mr. Kannan Tiruvengadam was appointed as the Interim Resolution Professional, later confirmed as Resolution Professional. A fire in 2018 destroyed the Corporate Debtor's books and papers, leading to a resolution for liquidation passed by the CoC due to the absence of assets.

## Facts

Purna Pharmaceuticals Private Limited underwent Corporate Insolvency Resolution Process (CIRP) after being admitted by the Adjudicating Authority on October 3, 2019. Kannan Tiruvengadam was appointed as the Interim Resolution Professional and later confirmed as Resolution Professional. A significant fire in 2018 destroyed the company's books and records. The Committee of Creditors (CoC) resolved to liquidate the Corporate Debtor due to the absence of assets. An order for liquidation was passed on January 22, 2020, and Kannan Tiruvengadam was appointed as the Liquidator. Public announcements regarding the commencement of liquidation were made in the Financial Express and Ajjkal newspapers on February 1, 2020. The Liquidator received two claims from stakeholders, one of

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## Issues and analysis

### Issue 1: Whether the application for dissolution of the Corporate Debtor, Purna Pharmaceuticals Private …

**Ratio:** Section 54(2) of the Insolvency and Bankruptcy Code, 2016, allows for the dissolution of

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**Reasoning:** The court reasoned that based on the liquidator's reports and the fact that the Corporate

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**Interpretation:** The interpretation of Section 54(2) is that once the liquidation process is

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** BIDISHA BA…; Balraj…
- **Respondents:** Purna Pharmaceutic…

## Timeline

- **2018-01-01 — Fire Inc…**: A massive fire occurred at the building of the registered office of the Corporate Debtor,…
- **2019-10-03 — CIRP Admi…**: The Adjudicating Authority admitted the Corporate Debtor into Corporate Insolvency…

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