# In the matter of J.M. Financial Asset Reconstruction Company Ltd. Vs. G. Madhusudhan Rao, RP of Bheema Cements Ltd. CA (AT) (Insolvency) 663-2019

> NCLAT judgment dated 18 Jul 2019. Citation: TCN-2019-NCLAT-00438. The appellant, J.M. Financial Asset Reconstruction Company Limited, a financial creditor and…

- **Court:** NCLAT
- **Order date:** 18 Jul 2019
- **Citation:** TCN-2019-NCLAT-00438
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jm-financial-asset-reconstruction-company-ltd-vs-g-madhusudhan-rao-rp-of-bheema-7ae30dd3

## Summary

### Background

The appellant, J.M. Financial Asset Reconstruction Company Limited, a financial creditor and member of the Committee of Creditors (CoC), filed I.A. No. 266 of 2019 before the Adjudicating Authority (NCLT, Hyderabad Bench) seeking exclusion of two periods from the Corporate Insolvency Resolution Process (CIRP) of M/s Bheema Cements Ltd. (Corporate Debtor). The first period was 135 days (from August 27, 2018, to January 8, 2019) during which the renewal of a mining lease, a main asset of the Corporate Debtor, was pending. The second period was 147 days (from November 9, 2018, to April 4, 2019) due to the pendency of another Interlocutory Application, I.A. No. 551 of 2018.

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## Facts

J.M. Financial Asset Reconstruction Company Limited, a financial creditor and member of the Committee of Creditors (CoC), filed I.A. No. 266 of 2019 before the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad. The application sought the exclusion of two periods from the Corporate Insolvency Resolution Process (CIRP) of M/s Bheema Cements Ltd. (Corporate Debtor).

The first period requested for exclusion was 135 days, from August 27, 2018, to January 8, 2019. This period was during which the renewal of a mining lease, identified as the main asset of the Corporate Debtor, remained pending. The appellant argued that this delay justified the exclusion from the CIRP timeline.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in refusing to exclude additional periods from the…

**Ratio:** The Adjudicating Authority is justified in refusing to exclude additional periods from…

**Reasoning:** The Adjudicating Authority had already granted a 90-day extension, bringing the total…

**Interpretation:** The court interpreted the provisions related to CIRP timelines as strict,…

**Application:** In this case, despite the renewal of mining leases and a 90-day extension, the…

## Parties

- **Judges:** S.J. Mukhop…; Chairpe…; +2 more
- **Advocates:** For Appel…; Ramji Srinivasan,…; +7 more

## Timeline

- **August 27, 2018 — Start of first…**: The period from this date to January 8, 2019 (135 days) was sought for exclusion due to…
- **November 9, 2018 — Start of second…**: The period from this date to April 4, 2019 (147 days) was sought for exclusion due to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 28 — Approval of committee of creditors for certain…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-28)

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