# In the matter of Prakash Oil Depot vs. G. Madhusudhan Rao and Anr.

> NCLAT judgment dated 2025-08-01. Citation: TCN-2025-NCLAT-00429. The case involves two company appeals against an order by the NCLT, Hyderabad, which denied…

- **Court:** NCLAT
- **Order date:** 1 Aug 2025
- **Citation:** TCN-2025-NCLAT-00429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/prakash-oil-depot-vs-g-madhusudhan-rao-and-anr-d2ead16c

## Summary

### Background

The case involves two company appeals against an order by the NCLT, Hyderabad, which denied an extension of time for completing a scheme of arrangement proposed by M/s. Prakash Oil Depot under Section 230 of the Companies Act, 2013, read with Regulation 2B of the IBBI (Liquidation Process) Regulations, 2016.

## Facts

The Corporate Debtor, M/s. Sarda Agro Oils Limited, was placed under liquidation by an order dated 09.01.2023.

The Adjudicating Authority excluded certain periods for determining the period prescribed under Regulation 2B.

The Appellants could not finalize and present the scheme of compromise/arrangement within 90 days from 31.07.2024.

A cheque for Rs.4.30 crores was submitted on 31.05.2024 towards Earnest Money Deposit.

The NCLT rejected the applications on 26.05.2025, citing contravention of Regulation 2B(1) of the IBBI (Liquidation Process) Regulations, 2016.

The Financial Creditors gave their consent to the proposed scheme on 22.04.2025.

The proposed scheme was approved by 100% of the secured creditors within the Stake Holder Consultation Committee (SCC).

## Issues and analysis

### Issue 1: Whether the stipulation as prescribed by the provisions contained under Regulation 2B(1) of the …

**Ratio:** The timeline of 90 days prescribed by regulation

…

**Reasoning:** The NCLAT relied on precedents, including the decision of NCLAT in Y. Shivaram Prasad Vs.

…

**Interpretation:** The 90-day timeline is not an absolute bar and can be extended if it

…

**Application:** The NCLAT held that the Tribunal should consider the commercial wisdom of the

…

## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** M/S.PRAKASH OIL…
- **Respondents:** M/s Sarda Agro…; G. Madhusud…; +1 more
- **Other parties:** Reshma M…
- **Advocates:** Satish Par…; Pavan Kumar…; +3 more

## Timeline

- **09.01.2023 — Liquidation…**: The Corporate Debtor, M/s. Sarda Agro Oils…
- **25.01.2024 — Scheme Subm…**: Scheme of arrangement proposed and submitted by M/s. Prakash Oil Depot under Section 230…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230 — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-chennai/prakash-oil-depot-vs-g-madhusudhan-rao-and-anr-d2ead16c