# In the matter of R.P of SEL Manufacturing Company Ltd. Vs. Committee of Creditors of SEL Manufacturing Ltd. & Ors. CA(AT)(Insolvency) No. 1062 of 2019

> NCLAT judgment dated 2019-11-13. Citation: TCN-2019-NCLAT-00139. The case involves an appeal against the Adjudicating Authority's order rejecting the…

- **Court:** NCLAT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLAT-00139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rp-of-sel-manufacturing-company-ltd-vs-committee-of-creditors-of-sel-manufacturi-6df5c7d7

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's order rejecting the exclusion of a certain period from the Corporate Insolvency Resolution Process (CIRP) of SEL Manufacturing Company Limited. The CIRP was initiated on April 11, 2018, following an application under Section 7 of the Insolvency and Bankruptcy Code (I&B Code) by the State Bank of India. During the pendency of the case, the Promoters moved before the High Court of Punjab and Haryana, and the matter was stayed by orders passed by the Punjab and Haryana High Court and the Supreme Court. The Resolution Professional filed an application before the Adjudicating Authority (National Company Law Tribunal) for exclusion of more than 100 days.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against SEL Manufacturing Company Limited on April 11, 2018, based on an application under Section 7 of the Insolvency and Bankruptcy Code (I&B Code) filed by the State Bank of India. The Promoters of the company moved before the High Court of Punjab and Haryana, leading to a stay of the proceedings. The matter was also taken up by the Supreme Court. Due to these legal challenges and interim orders, the CIRP could not proceed effectively. The Resolution Professional, at the instance of the Committee of Creditors, filed an application before the Adjudicating Authority (National Company Law Tribunal) seeking exclusion of a period exceeding 100 days from the CIRP timeline. The Adjudicating Authority

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## Issues and analysis

### Issue 1: Whether the period during which the matter was pending before the High Court of Punjab and Haryana …

**Ratio:** The ratio is based on the principle that if the CIRP is stalled due to legal proceedings

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**Reasoning:** The court reasoned that the matter was pending before the High Court and the Supreme

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**Interpretation:** The interpretation involves understanding that the CIRP timeline can be

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**Application:** The NCLAT applied this ratio to the specific facts of the case, where the CIRP

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…
- **Appellants:** R.P. of SEL…
- **Respondents:** SEL Manufacturing…; Committee of…

## Timeline

- **2018-04-11 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against SEL Manufacturing Company…
- **2018-05-01 — High Court Inte…**: The Hon'ble High Court of Punjab and Haryana passed an interim order prohibiting the…

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