# In the matter of Edelweiss Asset Reconstruction Company Ltd. vs. Chirag Rejendrakumar Shah

> NCLAT judgment dated 2025-02-18. Citation: TCN-2025-NCLAT-00400. The case involves two appeals filed by Edelweiss Asset Reconstruction Company Ltd., a…

- **Court:** NCLAT
- **Order date:** 18 Feb 2025
- **Citation:** TCN-2025-NCLAT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/edelweiss-asset-reconstruction-company-ltd-vs-chirag-rejendrakumar-shah-0c619fff

## Summary

### Background

The case involves two appeals filed by Edelweiss Asset Reconstruction Company Ltd., a dissenting financial creditor, challenging orders dated 24.01.2025 passed by the National Company Law Tribunal, Allahabad Bench, Prayagraj. The Adjudicating Authority allowed IA No.425 of 2024, granting exclusion of 60 days from the CIRP, and rejected IA No.507 of 2024, filed by the Appellant seeking liquidation of the Corporate Debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) against Usha India Ltd. commenced on 05.10.2023.

The Appellant, Edelweiss Asset Reconstruction Company Ltd., has a 0.17% vote share in the Committee of Creditors (CoC).

The RP published Form-G thrice, but no compliant Resolution Plan was received within the timeline.

The Adjudicating Authority excluded 60 days from the CIRP period on 01.07.2024, extending it to 31.08.2024.

The CoC resolved to extend the period for submission of the Resolution Plan.

The Adjudicating Authority allowed IA No.425 of 2024, granting exclusion of 60 days, and dismissed IA No.507 of 2024, seeking liquidation.

The CoC voted with 95.01% share to extend the CIRP by 60 days.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in granting an exclusion of 60 days from the CIRP …

**Ratio:** The Adjudicating Authority's decision to grant the exclusion of 60 days was justified,

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**Reasoning:** The CoC, representing a significant majority of the creditors, decided to extend the CIRP

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**Interpretation:** The exclusion of time from the CIRP period is permissible when there are valid

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**Application:** In this case, the Adjudicating Authority's decision to grant the exclusion of

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Edelweiss Asset…; Mukesh Kumar…; +1 more
- **Respondents:** Usha India…; Chirag Rejendrakum…
- **Other parties:** IFCI Li…; Stressed Assets…; +8 more
- **Advocates:** Krishnan Ve…; Kaushik M…; +1 more

## Timeline

- **2023-10-05 — Commencement…**: Corporate Insolvency Resolution Process…
- **2024-01-07 — Exclusion of C…**: Adjudicating Authority excluded 60 days period for completion of the CIRP, i.e. upto…

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