# In the matter of Kusum Products Limited Vs. Union of India CA (AT) No. 69-2018

> NCLAT judgment dated 2018-05-03. Citation: TCN-2018-NCLAT-00309. The Appellant Company had a Scheme of revival plan from the Board for Industrial and…

- **Court:** NCLAT
- **Order date:** 3 May 2018
- **Citation:** TCN-2018-NCLAT-00309
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kusum-products-limited-vs-union-of-india-ca-12e66e12

## Summary

### Background

The Appellant Company had a Scheme of revival plan from the Board for Industrial and Financial Reconstruction (BIFR). They sought an extension for compliance with the Scheme. The Sick Industrial Companies (Special Provisions) Act, 1985 was repealed by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003. The Appellant applied under Rule 11 of the National Company Law Tribunal Rules, 2016, read with the SICA Repeal Act, 2003, and the Insolvency and Bankruptcy Code, 2016, for an extension of statutory time.

## Facts

Kusum Products Limited, the Appellant, had a revival scheme under the Board for Industrial and Financial Reconstruction (BIFR). The Appellant sought an extension of time to comply with the scheme. The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA Act, 1985) had been repealed by the Sick Industrial Companies (Special Provisions) Repeal Act, 2003 (SICA Repeal Act, 2003). The Appellant applied under Rule 11 of the National Company Law Tribunal Rules, 2016, read with the SICA Repeal Act, 2003, and the Insolvency and Bankruptcy Code, 2016 (I&B Code), for an extension of statutory time. The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, rejected the application. The Appellant then appealed to the National Company Law Appellate

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in rejecting the application for extension of time …

**Ratio:** The Adjudicating Authority rightly rejected the application because there was no

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**Reasoning:** The court reasoned that the relevant laws and rules did not provide a mechanism for

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**Interpretation:** The interpretation of the relevant laws and rules is strict, requiring explicit

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

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Kusum Products…
- **Respondents:** Union of…

## Timeline

- **2018-05-03 — Application for Scheme…**: The Appellant Company brought a Scheme of revival plan from erstwhile 'Board for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 252 — Amendments of Act 1of 2004](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-252)

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