# Punjab National Bank vs. George Distributors Private Limited

> NCLT judgment dated 2026-07-28. Citation: TCN-2026-NCLT-00787. An application was filed by Oriental Bank of Commerce (now Punjab National Bank), the Financial…

- **Court:** NCLT
- **Order date:** 28 Jul 2026
- **Citation:** TCN-2026-NCLT-00787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/punjab-national-bank-vs-george-distributors-private-limited-qnlun

## Summary

### Background

An application was filed by Oriental Bank of Commerce (now Punjab National Bank), the Financial Creditor, under Section 7 of the IBC, 2016, against M/s. George Distributors Private Limited, the Corporate Debtor. The NCLT admitted the application on September 5, 2019, initiating the Corporate Insolvency Resolution Process (CIRP) and appointing Mr. Hiralal Prasad as the Interim Resolution Professional (IRP). The CIRP proceedings were initially stayed by the Hon'ble High Court but were subsequently revived by the Hon'ble Apex Court on January 3, 2025. Mr. Santanu Brahma was appointed as the Resolution Professional (RP) on April 24, 2025. The RP published public announcements and invited Expressions of Interest (EoIs) for a resolution plan. After a second publication of

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## Facts

An application was filed by Oriental Bank of Commerce (Financial Creditor) under Section 7 of the IBC, 2016, against M/s. George Distributors Private Limited (Corporate Debtor).

The Tribunal admitted the application on September 5, 2019, initiating Corporate Insolvency Resolution Process (CIRP) and appointing Mr. Hiralal Prasad as the Interim Resolution Professional (IRP).

An application (IA (IBC) 1285/KB/2019) was filed by the Suspended Board of Directors seeking a stay of CIRP, which was dismissed on November 5, 2019.

The Hon'ble High Court quashed the NCLT orders dated September 5, 2019, and November 5, 2019.

The Hon'ble Apex Court revived the CIRP proceedings on January 3, 2025, setting aside the High Court order in SLP No. 15347-15348 of 2020.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, George Distributors Private Limited, should be ordered for …

**Ratio:** The Corporate Debtor must be liquidated if the Committee of Creditors rejects the

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**Reasoning:** The sole resolution plan received was rejected by the majority voting share (68.30%) of

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**Interpretation:** Section 33(1) of the IBC mandates liquidation if the resolution plan is

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**Application:** Since the CoC, with the majority shareholder (PNB), rejected the resolution

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## Parties

- **Judges:** BIDISHA BANERJEE,…; REKHA KANTILAL…
- **Appellants:** Punjab National…; CA Santanu…
- **Respondents:** George Distributor…
- **Other parties:** Oriental Bank of…; Hiralal P…; +1 more
- **Advocates:** Jai Kumar…; Shivansi I…; +8 more

## Timeline

- **2019-09-05 — CIRP Initiation and IRP…**: NCLT admitted the Section 7 application and initiated CIRP against the Corporate Debtor,…
- **2019-09-07 — Public Annou…**: Public announcement under Regulation 6(1) of…

## Legal provisions

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

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