# 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-00008. 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-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gabs-megacorp-ltd-vs-sutanu-sinha-and-anr-ca-690baf3a

## Summary

### Background

The appeal concerns the extension of time for the liquidation process of GABS Megacorp Ltd. The appellant sought an extension, arguing that the time taken in prosecuting the application for extension was not considered. The 'Lenders and Stakeholders Committee' approved a waiver of interest. The NCLAT considered the exclusion of the period of judicial intervention in calculating the liquidation timeline.

## 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 liquidation order was initially issued on 26-07-2019, with a completion date of 24-10-2020 as per Regulation 44. The period from 25th March 2020 to 21st December 2020 (271 days) was considered for exclusion based on the NCLAT order dated 03-12-2020. The period from 25-03-2020 to 03-09-2020 (162 days) was considered for exclusion based on the NCLT order dated 29-09-2020 read with 11-11-2020. The last date of the liquidation process was initially set for 22-07-2021, but was extended. The appellant had to pay Rs.1654.77 Crores minus any advance payment

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## Issues and analysis

### Issue 1: Whether the extension of time for the …

**Ratio:** The principle of allowing sufficient time for the completion of the liquidation process,

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

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**Interpretation:** The court interpreted the relevant regulations and precedents to allow for the

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**Application:** The court applied the ratio to the facts of the case, allowing the exclusion of

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Respondents:** GABS Megaco…; Sutanu Sinha and…

## Timeline

- **2019-07-26 — Liquidation…**: Liquidation order was…
- **2020-10-24 — Completion of…**: Original date for completion of…

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