# In the matter of Vikash Gautamchand Jain, RP of Kethos Tiles Private Limited

> NCLAT judgment dated 2024-08-20. Citation: TCN-2024-NCLAT-00251. M/s. Kethos Tiles Pvt. Ltd., an MSME, initiated PPIRP under Section 54C of the IBC. The…

- **Court:** NCLAT
- **Order date:** 20 Aug 2024
- **Citation:** TCN-2024-NCLAT-00251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vikash-gautamchand-jain-rp-of-kethos-tiles-private-limited-04d7e96e

## Summary

### Background

M/s. Kethos Tiles Pvt. Ltd., an MSME, initiated PPIRP under Section 54C of the IBC. The Adjudicating Authority initiated PPIRP on 2024-01-04 and appointed Vikas Gautam Chand Jain as the Resolution Professional (RP). The RP initiated PPIRP with a public announcement on 2024-01-06, and a Committee of Creditors (CoC) was formed. The 3rd CoC meeting on 2024-04-30 considered a revised base Resolution Plan. The CoC noted the 120-day PPIRP period ending on 2024-05-03 and authorized the RP to seek a 60-day extension with a 91.75% vote. The RP filed an application for extension, but the Adjudicating Authority, on 2024-06-03, asked for the legal basis for such an extension. The Adjudicating Authority rejected the extension application, terminating the PPIRP.

## Facts

M/s. Kethos Tiles Pvt. Ltd., classified as a Micro, Small & Medium Enterprise (MSME), initiated a Pre-Packaged Insolvency Resolution Process (PPIRP) by filing an application under Section 54C of the Insolvency and Bankruptcy Code (IBC), 2016. The Adjudicating Authority, on 2024-01-04, initiated the PPIRP and appointed Mr. Vikas Gautamchand Jain as the Resolution Professional (RP). Following the order, the RP made a public announcement on 2024-01-06 and constituted a Committee of Creditors (CoC). During the 3rd CoC meeting held on 2024-04-30, the members considered a revised base resolution plan submitted by the Corporate Debtor. The CoC noted that the 120-day PPIRP period would end on 2024-05-03. Subsequently, the CoC, with a 91.75% vote, authorized the RP to file

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## Issues and analysis

### Issue 1: Whether the 120-day time limit for completion of PPIRP under Section 54D of the IBC is mandatory, …

**Ratio:** The principle derived from Supreme Court judgments, such as 'Committee of Creditors of

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**Reasoning:** The NCLAT reasoned that Section 54D does not explicitly state that PPIRP automatically

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**Interpretation:** Section 54D(1) provides that PPIRP 'shall be completed' within 120 days.

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**Application:** In this case, the Adjudicating Authority erred by assuming that the 120-day

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Respondents:** Kethos Tiles…; Vikash Gautamchand…
- **Advocates:** Sunil Fer…; Honey S…; +10 more

## Timeline

- **2024-01-04 — PPIRP Init…**: Adjudicating Authority initiated…
- **2024-01-06 — Public Annou…**: RP initiated PPIRP by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54C — Application to initiate pre-packaged insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54c)

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