# In the matter of Purvi Metals Pvt. Ltd.

> NCLT judgment dated 2024-02-23. Citation: TCN-2024-NCLT-02442. The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Feb 2024
- **Citation:** TCN-2024-NCLT-02442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purvi-metals-pvt-ltd-74dad667

## Summary

### Background

The case involves an application filed under Section 33 of the Insolvency and Bankruptcy Code, 2016, by the Resolution Professional (RP) of the Corporate Debtor, M/s Purvi Metals Pvt Ltd, seeking approval for the liquidation of the Corporate Debtor. The Corporate Debtor was admitted into CIRP on 17.02.2020. The IRP made a public announcement and constituted a Committee of Creditors (CoC). Due to lockdowns, the process was delayed. The CoC did not approve the Expression of Interest, appointment of Resolution Professional, Registered Valuers, and Forensic Auditor. The CoC concluded that the Corporate Debtor was not a going concern and should be referred for liquidation due to the absence of valuable assets.

## Facts

The Corporate Debtor, M/s Purvi Metals Pvt Ltd, was admitted into CIRP on 17.02.2020. A public announcement was made, and claims of Rs. 297,163,886/- were admitted. The Committee of Creditors (CoC) was formed, consisting of Union Bank of India (84.66%) and Reliance-AR (15.34%). The CoC did not approve the issuance of Expression of Interest (EoI), the appointment of an Interim Resolution Professional, Registered Valuers, or a Forensic Auditor. Lockdowns caused delays, leading to the exclusion of 395 days from the CIRP period. The CoC concluded that the Corporate Debtor was not a going concern and lacked valuable assets. No Expression of Interest or Resolution Plan was received. The CoC approved the liquidation of the Corporate Debtor with 100% voting. The Corporate

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## Issues and analysis

### Issue 1: Whether the liquidation of the Corporate Debtor, M/s Purvi Metals Private Limited, should be …

**Ratio:** The legal principle applied is that if no resolution plan is feasible and the corporate

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**Reasoning:** The court reasoned that since no Expression of Interest (EoI) or Resolution Plan was

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

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**Application:** In this specific case, the absence of any EoI or Resolution Plan, coupled with

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Shri. Raj Kumar…
- **Respondents:** M/s Purvi Metals…; M/s NBS Engineerin…

## Timeline

- **2020-02-17 — Admission in…**: The Corporate Debtor was admitted…
- **2020-02-22 — Public Annou…**: The IRP issued a public…

## 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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