# In the matter of AGI Cargo Pvt. Ltd. (IB)-519(PB)-2017

> NCLT judgment dated 2019-04-11. Citation: TCN-2019-NCLT-03948. This case involves an application filed under Section 12(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 11 Apr 2019
- **Citation:** TCN-2019-NCLT-03948
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/agi-cargo-pvt-ltd-ib-519pb-2017-6c91384d

## Summary

### Background

This case involves an application filed under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days beyond the initial 180-day period, which expired on April 9, 2019. The application was supported by a resolution passed by the Committee of Creditors (CoC) in its meeting held on April 6, 2019. The reason for seeking the extension was the non-cooperation of the Directors of the Suspended Board and Statutory Auditors of the Corporate Debtor.

## Facts

The Globe Express Services Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against AGI Cargo Pvt Ltd. An application was filed under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, seeking a 90-day extension to the initial 180-day CIRP period, which expired on April 9, 2019. The Committee of Creditors (CoC) supported the extension in a meeting on April 6, 2019. The primary reason for seeking the extension was the non-cooperation of the Directors of the Suspended Board and Statutory Auditors of AGI Cargo Pvt Ltd. An earlier application, CA-131/PB/2019, addressing the non-cooperation, was disposed of on April 5, 2019, with the option to refile if non-cooperation continued. The CoC's resolution for extension received over 79% of the voting

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) period should be extended by 90 days …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code, 2016, allows for the extension of

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**Reasoning:** The court reasoned that the non-cooperation of the Directors of the Suspended Board and

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**Interpretation:** Section 12(2) is interpreted to allow for extensions of the CIRP period when

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**Application:** In this case, the ratio and reasoning were applied to the specific facts, where

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Globe Express…
- **Respondents:** AGI Cargo P…; M/s. AGI Cargo…

## Timeline

- **2019-04-05 — Disposal of CA-131/PB/20…**: NCLT disposed of application CA-131/PB/2019 regarding non-cooperation, with liberty to…
- **2019-04-06 — CoC Meet…**: Committee of Creditors (CoC) held a meeting and passed a resolution supporting the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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