# In the matter of GABS Megacorp Ltd. Vs. Sutanu Sinha and Anr. CA(AT)(Ins)No. 1026 of 2020 with CA (AT) (Ins.) 1027 of 2020

> NCLAT judgment dated 2020-12-21. Citation: TCN-2020-NCLAT-00007. The appeal concerns the extension of time for the liquidation process of GABS Megacorp Ltd.…

- **Court:** NCLAT
- **Order date:** 21 Dec 2020
- **Citation:** TCN-2020-NCLAT-00007
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gabs-megacorp-ltd-vs-sutanu-sinha-and-anr-ca-07184344

## Summary

### Background

The appeal concerns the extension of time for the liquidation process of GABS Megacorp Ltd. The appellant argues that the time taken in prosecuting the application for extension was not considered. The 'Lenders and Stakeholders Committee' approved the waiver of interest. The appellant sought an extension of time, which remained uncontested as the committee expressed interest in completing the sale of the Corporate Debtor in favor of the Appellant. The period during which the Appellant was seeking a waiver of interest is to be excluded.

## Facts

GABS Megacorp Ltd. is undergoing a liquidation process. The appellant sought an extension of time for the liquidation process. The 'Lenders and Stakeholders Committee' approved a waiver of interest by 91.59% voting. The appellant had been agitating before the judicial apparatus for a waiver of interest. The minutes recorded on December 8, 2020, indicated that the 90-day period in terms of Regulation 44 had ended on December 3, 2020. The appellant had not deposited any payment by November 30, 2020, and the voting lines had been extended until December 3, 2020. The period sought to be excluded is in terms of Regulation 47A. The liquidation order was issued on July 26, 2019, and the completion of the liquidation process as per Regulation 44 was on October 24, 2020. The

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## Issues and analysis

### Issue 1: Whether the extension of time for the liquidation process should be granted, considering the time …

**Ratio:** The legal principle applied is that the period of judicial intervention should be

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**Reasoning:** The court reasoned that the 'Lenders and Stakeholders Committee' had approved the waiver

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**Interpretation:** The legal issue involves the interpretation of Regulation 47A, which pertains

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**Application:** The ratio and reasoning were applied to the specific facts of the case by

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Respondents:** GABS Megaco…; Sutanu…
- **Advocates:** Virendra…; Harsh Par…; +10 more

## Timeline

- **2019-07-26 — Liquidation…**: Liquidation Order was…
- **2020-10-24 — Completion of…**: Completion of Liquidation…

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