# In the matter of ACIL Ltd. (IB)-170(PB)-2018

> NCLT judgment dated 2019-07-26. Citation: TCN-2019-NCLT-02247. The case involves an application for a 30-day extension to allow the Resolution Professional…

- **Court:** NCLT
- **Order date:** 26 Jul 2019
- **Citation:** TCN-2019-NCLT-02247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/acil-ltd-ib-170pb-2018-eb350c03

## Summary

### Background

The case involves an application for a 30-day extension to allow the Resolution Professional and the Committee of Creditors (CoC) to finalize the approval of a revised resolution plan. The initial resolution plan was rejected by the CoC on 2019-07-15. An earlier application, C.A. No. 1282(PB)/2018, highlighted that 152 days were spent extracting information from ex-directors. C.A. No. 1100(PB)/2019 sought exclusion of 30 days related to deciding C.A. No. 1282(PB)/2018. The discovery of property in June 2019 led to revisions in the information memorandum and valuation, prompting the applicant to file a revised resolution plan.

## Facts

IDBI Bank Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against ACIL Ltd. under Section 7 of the Insolvency & Bankruptcy Code. An application was filed seeking a 30-day extension to finalize the approval of a revised resolution plan. The initial resolution plan was rejected by the CoC on 2019-07-15. Previously, 152 days were consumed in extracting information from ex-directors, as highlighted in C.A. No. 1282(PB)/2018. Another application, C.A. No. 1100(PB)/2019, sought exclusion of 30 days related to deciding C.A. No. 1282(PB)/2018. The discovery of property in June 2019 led to revisions in the information memorandum and valuation, prompting the applicant to file a revised resolution plan. The CoC passed a resolution with a 96.78% voting share to

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## Issues and analysis

### Issue 1: Whether a 30-day extension should be granted to the Resolution Professional and the CoC to conclude …

**Ratio:** The adjudicating authority has the discretion to grant extensions in CIRP proceedings to

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**Reasoning:** The court considered the delays caused by the need to extract information from

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**Interpretation:** The interpretation of the Insolvency & Bankruptcy Code allows for

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**Application:** Given the delays and the CoC's support, the court applied its discretion to

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## Parties

- **Judges:** M. M. K…; V.K. SUB…
- **Appellants:** IDBI Bank…
- **Respondents:** ACIL…

## Timeline

- **2019-06-01 — Discovery of…**: Property discovered in June 2019, leading to revisions in the information memorandum and…
- **2019-07-15 — Rejection of Initial…**: The earlier resolution plan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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