# In the matter of PVS Memorial Hospital Private Ltd. MA(IBC)-17 & 08-KOB-2022, MA(IBC)-13 & 35-KOB-2021 in TIBA-11-KOB-2019

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04625. The case involves an application filed by the Monitoring Agent of PVS Memorial Hospital Private…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04625
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pvs-memorial-hospital-private-ltd-maibc-17-08-kob-2022-maibc-13-35-kob-2021-in-t-afcb669b

## Summary

### Background

The case involves an application filed by the Monitoring Agent of PVS Memorial Hospital Private Limited seeking permission to pay a sum of Rs.28,662 to the Kerala Water Authority as final payment, in accordance with the approved resolution plan. The Corporate Insolvency Resolution Process (CIRP) was initiated against PVS Memorial Hospital Private Limited in TIBA/11/KOB/2019, and a resolution plan submitted by M/s Lissie Medical Institution was approved. During the CIRP, Kerala Water Authority submitted a claim, part of which was provisionally admitted. However, the resolution plan did not include a provision for the payment of the admitted claim to the Kerala Water Authority.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against PVS Memorial Hospital Private Limited in TIBA/11/KOB/2019. Kerala Water Authority submitted a claim of Rs.16,10,79,287, which included water charges and penalty. The Resolution Professional (RP) rejected Rs.15,90,71,726 of the claim due to lack of supporting documents, and Rs.20,07,561 was provisionally admitted. The resolution plan approved by the Adjudicating Authority on 22.02.2021 did not include any provision for payment of the provisionally admitted claim of Rs.20,07,561 to Kerala Water Authority. The applicant, appointed as the Monitoring Agent, filed M.A.No.35/KOB/2021 seeking a direction to Kerala Water Authority to reinstate the water supply to the hospital. The Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can recall its earlier order directing the release of payment to …

**Ratio:** The Adjudicating Authority has the power to rectify mistakes apparent on the record under

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**Reasoning:** The Adjudicating Authority reasoned that the earlier order directing the release of

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**Interpretation:** Section 420(2) of the Companies Act 2013 allows for the rectification of

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**Application:** The Adjudicating Authority applied the ratio by recalling the earlier order,

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Bijoy P. P…
- **Respondents:** PVS Memorial…; Deputy Chief…

## Timeline

- **2019-10-16 — CIRP Init…**: CIRP initiated against PVS…
- **2021-02-22 — Resolution Plan…**: Resolution plan submitted by M/s…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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