# In the matter of Ajay Agarwal Vs. Shantau T. Ray, RP of AML Steel & power Ltd. CA(AT)(Insolvency) 61-2019

> NCLAT judgment dated 2019-01-18. Citation: TCN-2019-NCLAT-00864. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 18 Jan 2019
- **Citation:** TCN-2019-NCLAT-00864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ajay-agarwal-vs-shantau-t-ray-rp-of-aml-steel-power-ltd-ca-dbc1b8c6

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), Chennai, which excluded 90 days from the Corporate Insolvency Resolution Process (CIRP) period. The appellant, Ajay Agarwal, is the Promoter and one of the Directors of AML Steel and Power Ltd. (Corporate Debtor). The Adjudicating Authority excluded the 90 days due to the company premises being located in a Naxalite-infested area, causing hardship for the Resolution Professional in visiting the premises.

## Facts

Ajay Agarwal, the Promoter and Director of AML Steel and Power Ltd. (Corporate Debtor), appealed against an order by the Adjudicating Authority (NCLT), Chennai. The NCLT had excluded 90 days from the Corporate Insolvency Resolution Process (CIRP) period of AML Steel and Power Ltd. The exclusion was granted because the company's premises were located in a Naxalite-infested area, causing difficulties for the Resolution Professional (RP) in accessing the site. The Committee of Creditors (CoC) had passed a resolution seeking this exclusion. The Appellate Tribunal noted delays in the selection of a resolution applicant due to lack of financial information and cooperation from the Promoters/Directors, compounded by the security issues. The NCLAT considered the 'Quinn

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in excluding 90 days from the Corporate Insolvency …

**Ratio:** The ratio is based on the principle that time can be excluded from the CIRP period if

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**Reasoning:** The court reasoned that the location of the company's premises in a Naxalite-infested

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**Interpretation:** The interpretation is that the CIRP period can be adjusted to account for

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**Application:** In this case, the ratio and reasoning were applied to the specific facts of the

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## Parties

- **Judges:** Bansi Lal…
- **Appellants:** Ajay Ag…
- **Respondents:** AML Steel and…; Shantanu T. Ray,…

## Timeline

- **2018-12-11 — Impugned Ord…**: The Adjudicating Authority (NCLT) passed the impugned order excluding 90 days from the…
- **2018-12-07 — Effective Date of…**: The exclusion of 90 days from the CIRP…

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