# In the matter of Rajabhau Shinde & Ors. vs. S.M. Electric Works & Ors.

> NCLAT judgment dated 2025-03-18. Citation: TCN-2025-NCLAT-00158. The case involves two appeals filed by the same appellant, a suspended director of the…

- **Court:** NCLAT
- **Order date:** 18 Mar 2025
- **Citation:** TCN-2025-NCLAT-00158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajabhau-shinde-ors-vs-sm-electric-works-ors-713bda59

## Summary

### Background

The case involves two appeals filed by the same appellant, a suspended director of the corporate debtor, challenging orders dated 27.02.2024 and 15.07.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The CIRP against the Corporate Debtor, Trans Fab Power India Pvt. Ltd., commenced on 30.08.2019. The appellant submitted a resolution plan which was approved on 25.03.2021, but the appellant failed to execute the plan, leading to the CoC deciding to liquidate the Corporate Debtor. An order for liquidation was passed on 28.06.2023. An e-auction notice was issued, and S.M. Electric Works participated and was declared the successful bidder on 27.10.2023. A letter of intent was issued on 30.10.2023. The successful bidder paid 25% of the

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## Facts

The Corporate Debtor, Trans Fab Power India Pvt. Ltd., underwent CIRP commencing on 30.08.2019. Rajabhau Shinde, the suspended director, submitted a resolution plan approved on 25.03.2021, but failed to execute it. Consequently, the CoC decided to liquidate the Corporate Debtor, and an order for liquidation was passed on 28.06.2023. An e-auction was conducted, where S.M. Electric Works emerged as the successful bidder on 27.10.2023 with a bid of Rs.6,05,91,998/-. A letter of intent was issued on 30.10.2023. The bidder paid 25% of the bid amount by 25.01.2024, but failed to pay the remaining 75% by 28.01.2024. The bidder requested an extension, which the SCC denied, citing a lack of provision for extension. The liquidator returned the paid amount and issued a re-auction

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority had the jurisdiction to extend the time for the successful …

**Ratio:** The Hon'ble Supreme Court has held that the Adjudicating Authority exercises statutory

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**Reasoning:** The Tribunal relied on the Hon'ble Supreme Court's judgment in “V.S. Palanivel vs. P.

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**Interpretation:** Section 35 of the IBC, when read with Rule 11 of the NCLT Rules, grants the

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**Application:** In the present case, the Adjudicating Authority extended the time for payment,

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Rajabhau…
- **Respondents:** Trans Fab Power…; S.M. Electric…

## Timeline

- **2019-08-30 — CIRP Commen…**: CIRP against Trans Fab Power…
- **2021-03-25 — Resolution Plan…**: Resolution plan submitted by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35 — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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