# In the matter of Sushil Jejani S/o Atmaram Jejani & Ors. vs. Pasad Dharap & Ors.

> NCLAT judgment dated 2025-07-18. Citation: TCN-2025-NCLAT-00312. The case involves multiple appeals (Company Appeal No. 449, 473, 485, and 463 of 2025)…

- **Court:** NCLAT
- **Order date:** 18 Jul 2025
- **Citation:** TCN-2025-NCLAT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sushil-jejani-so-atmaram-jejani-ors-vs-pasad-dharap-ors-c642149e

## Summary

### Background

The case involves multiple appeals (Company Appeal No. 449, 473, 485, and 463 of 2025) arising from orders passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in CP(IB) No. 1833 of 2017. The appeals concern the liquidation of Jejani Pulp & Paper Mills Pvt Ltd and the auction sale of its assets.

## Facts

The Corporate Debtor, Jejani Pulp & Paper Mills Pvt Ltd, was admitted into CIRP on 22.06.2018.

Liquidation proceedings were initiated on 18.10.2019.

The first auction on 15.02.2020 was unsuccessful.

A second auction was conducted on 28.09.2020 with a revised reserve price of Rs 9,30,00,000.

Dicksons Overseas Pvt. Ltd. emerged as the Successful Auction Purchaser (SAP) for Rs. 9.23 Cr.

A Letter of Intent (LoI) was issued to SAP on 01.10.2020, requiring payment within 90 days (by 29.12.2020).

SAP applied for land conversion, which was rejected.

The Liquidator also applied for land conversion.

The Government stayed the conversion process on 10.12.2020.

SAP filed W.P. No. 3821/2020 in the Bombay High Court challenging the stay.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in allowing the SAP to remit the balance sale …

**Ratio:** The Adjudicating Authority has the power to extend the time period for payment if

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**Reasoning:** The tribunal considered the 'external circumstances' such as the stay on land conversion,

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**Interpretation:** While the 90-day timeline is generally mandatory, the Adjudicating Authority

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**Application:** In this case, the Adjudicating Authority's decision to allow the SAP additional

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sushil Jejani S/o…
- **Respondents:** Jejani Pulp &…; Pasad D…; +7 more
- **Other parties:** Sushil J…
- **Advocates:** Gaurav…; Rohit An…; +10 more

## Timeline

- **2018-06-22 — CIRP Init…**: Corporate Debtor…
- **2019-10-18 — Liquidation…**: Liquidation proceedings…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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