# In the matter of Punjab National Bank & Anr. Vs. Ajmer Singh Bhullar & Ors. Civil Appeal No. 9973 of 2018 arising out of special leave to petition (C) No. __ of 2018 and another appeal

> SC judgment dated 2018-09-25. Citation: TCN-2018-SC-00014. The case involves a challenge to the constitutional validity of some provisions of the Insolvency…

- **Court:** SC
- **Order date:** 25 Sept 2018
- **Citation:** TCN-2018-SC-00014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/punjab-national-bank-anr-vs-ajmer-singh-bhullar-ors-civil-appeal-no-9973-of-2018-fedebd96

## Summary

### Background

The case involves a challenge to the constitutional validity of some provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) before the Punjab & Haryana High Court. An interim order was passed by the High Court stating that the National Company Law Tribunal (NCLT), Chandigarh, may continue with the proceedings but should not pass a final order. The period of 270 days mentioned under the Code has come to an end. The Committee of Creditors rejected the resolution plans and opined that the matter should proceed for liquidation.

## Facts

Punjab National Bank & Anr. filed an appeal against Ajmer Singh Bhullar & Ors. The Punjab & Haryana High Court had issued an interim order in a writ petition challenging the constitutional validity of certain provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). The High Court's order restricted the NCLT, Chandigarh, from passing a final order. The Committee of Creditors rejected the resolution plans and suggested liquidation. The Supreme Court considered the appeal against this backdrop.

## Issues and analysis

### Issue 1: Whether the interim order passed by the Punjab & Haryana High Court should be vacated, allowing …

**Ratio:** The court applied the principle that when the Committee of Creditors has opined for

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**Reasoning:** The court reasoned that since the Committee of Creditors had rejected the resolution

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**Interpretation:** This involves interpreting the powers and duties of the Committee of Creditors

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**Application:** Given the fact that the Committee of Creditors had rejected the resolution

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## Parties

- **Judges:** ROHINTON FALI…; Indu Mal…
- **Appellants:** Punjab National…
- **Respondents:** AJMER SINGH…
- **Other parties:** Over Tu…

## Timeline

- **2017-12-21 — Interim Order by Punjab…**: The Punjab & Haryana High Court passed an interim order in a writ petition challenging…
- **2018-09-25 — Supreme Cour…**: The Supreme Court allowed the appeal, vacated the interim order of the High Court, and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30 — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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