# In the matter of Dr. Palani G Periasamy vs. CA M. Suresh Kumar Liquidator, Dharani Sugars and Chemicals Limited & Anr.

> NCLAT judgment dated 2023-07-11. Citation: TCN-2023-NCLAT-00393. The case involves an appeal against an order dated 27/06/2023 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLAT-00393
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dr-palani-g-periasamy-vs-ca-m-suresh-kumar-liquidator-dharani-sugars-and-chemica-5c4420b8

## Summary

### Background

The case involves an appeal against an order dated 27/06/2023 passed by the Adjudicating Authority (National Company Law Tribunal, Special Bench – I, Chennai). The appellant, the Promoter and erstwhile Director of Dharani Sugars & Chemicals Limited, challenged the dismissal of applications (I.A.(IBC)/380/CHE/2023, I.A.(IBC)/490/CHE/2023, and INV.P/5(CHE)/2023) filed in IBA/976/2019 by the Resolution Professional (RP) seeking an extension of the Corporate Insolvency Resolution Process (CIRP) beyond 330 days. The CIRP proceedings for Dharani Sugars and Chemicals Limited were initiated on 29.07.2021, and S. Rajendran was appointed as the Interim Resolution Professional. An earlier order dated 29.07.2021 was challenged, and the NCLAT passed an order on 27.08.2021

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for Dharani Sugars and Chemicals Limited on 2021-07-29, with S. Rajendran appointed as the Interim Resolution Professional. The initial order was challenged, leading to an NCLAT order on 2021-08-27. The Committee of Creditors (CoC) and the Adjudicating Authority extended the CIRP period multiple times. The Resolution Professional (RP) filed three applications seeking further extensions of the CIRP period beyond 330 days: I.A. (IBC)/380/CHE/2022 (2023-02-20 to 2023-03-21), I.A.(IBC)/490/CHE/2022 (2023-03-22 to 2023-05-20), and Diary No. 3305118/01516/2023 (2023-05-21 to 2023-08-18). During the pendency of these applications, the RP also filed I.A. No. 1023 of 2023 seeking liquidation of the Corporate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in dismissing the applications for extension of …

**Ratio:** The CIRP must be completed within 330 days from the date of commencement of insolvency,

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**Reasoning:** The Adjudicating Authority observed that no resolution plan or application under Section

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of CIRP applications under

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**Application:** In this case, the RP filed applications for extension of time while also

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## Parties

- **Judges:** Rakesh Kuma…; Shreesha…
- **Appellants:** PALANI G PE…
- **Respondents:** Dharani Sugars…; CA M. Suresh…

## Timeline

- **2021-07-29 — CIRP Init…**: CIRP proceedings initiated for Dharani Sugars and Chemicals Limited; S. Rajendran…
- **2021-08-27 — NCLAT Or…**: NCLAT passes an order regarding the hearing of the Company Appeal related to the CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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