# In the matter of Bhrugesh Amin vs. Edelweiss Asset Reconstruction Company & Ors.

> NCLAT judgment dated 2023-08-18. Citation: TCN-2023-NCLAT-00273. These are two appeals relating to the extension of the Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 18 Aug 2023
- **Citation:** TCN-2023-NCLAT-00273
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhrugesh-amin-vs-edelweiss-asset-reconstruction-company-ors-a291374c

## Summary

### Background

These are two appeals relating to the extension of the Corporate Insolvency Resolution Process (CIRP) period for Smaaash Entertainment Private Limited. Company Appeal (AT) Insolvency No. 699-700 of 2023 was filed by Bhrugesh Amin, the Resolution Professional, challenging an order dated April 10, 2023, which partly allowed I.A. No. 1075 of 2023, excluding only 30 days from the CIRP period. Company Appeal (AT) Insolvency No. 870 of 2023 was filed by Kalpana Morakhia, the Suspended Director of the Corporate Debtor, challenging an order dated June 13, 2023, which allowed I.A. No. 1679 of 2023, excluding 262 days from the CIRP period. The CIRP was initiated based on an application by Edelweiss Asset Reconstruction Company Limited under Section 7 of the I&B Code, 2016.

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Smaaash Entertainment Private Limited based on an application by Edelweiss Asset Reconstruction Company Limited under Section 7 of the I&B Code, 2016. Bhrugesh Amin was appointed as the Resolution Professional. The Resolution Professional filed I.A. No. 1075 of 2023 seeking exclusion of 232 days from July 25, 2022, to March 14, 2023, due to the pendency of I.A. No. 2115/2022. The Adjudicating Authority partly allowed the application, excluding only 30 days from February 13, 2023, to March 13, 2023, during which a stay order was in effect. The Resolution Professional then filed Company Appeal (AT) Insolvency No. 699-700 of 2023 challenging this order. Kalpana Morakhia, the Suspended Director of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in not considering the exclusion of 232 days related to …

**Ratio:** The principle of res judicata does not apply when the Adjudicating Authority did not

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**Reasoning:** The court found that the Adjudicating Authority's initial order only considered the

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**Interpretation:** The principle of res judicata prevents re-litigation of issues already decided.

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**Application:** The court applied the ratio to the facts by finding that the Adjudicating

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## Parties

- **Judges:** Ashok Bh…
- **Respondents:** Smaaash Entertainm…; Bhrugesh…

## Timeline

- **2022-05-06 — CIRP Commen…**: CIRP against Smaaash Entertainment Private Limited commenced by Order dated 06th May,…
- **2022-07-19 — Form-G I…**: Form-G was issued by Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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