The Chandigarh Bench of the National Company Law Tribunal recently admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Palchan Bhang Power Private Limited (PBPPL), initiating the Corporate Insolvency Resolution Process (CIRP).
The plea was filed by entities who claimed to be financial creditors of the company, namely, Ashirwad Agarwal, Sreedhar Ramakrishnan, Gurpartap Singh Mann, Triimech Power Pvt. Ltd. and Rising Sun Power Pvt. Ltd.
The dispute pertained to promoter and inter-corporate loans advanced to the respondent-corporate debtor between 2011 and 2014 for the development of the Palchan Bhang Hydro Electric Project. A Board Resolution dated 18 March 2011 had stipulated…