# In the matter of Assam Company India Ltd. (CA Kannan Tiruvengadam) IA No. 36-2018 IN CP (IB) No. 20-GB-2017

> NCLT judgment dated 2018-06-26. Citation: TCN-2018-NCLT-01223. The case involves an application filed by CA Kannan Tiruvengadam, the Resolution Professional…

- **Court:** NCLT
- **Order date:** 26 Jun 2018
- **Citation:** TCN-2018-NCLT-01223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/assam-company-india-ltd-ca-kannan-tiruvengadam-ia-no-36-2018-in-cp-ib-no-20-gb-2-2dc938ef

## Summary

### Background

The case involves an application filed by CA Kannan Tiruvengadam, the Resolution Professional (RP) appointed to conduct the Corporate Insolvency Resolution Process (CIRP) for Assam Company India Limited. The CIRP was initiated following an application by Srei Infrastructure Finance Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The RP sought an exclusion of 22 days from the CIRP timeline and an extension to allow the process to continue until August 14, 2018, due to delays caused by challenges to eligibility criteria for prospective resolution applicants (PRAs).

## Facts

Srei Infrastructure Finance Limited initiated Corporate Insolvency Resolution Process (CIRP) against Assam Company India Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. CA Kannan Tiruvengadam was appointed as the Resolution Professional (RP). The RP published an advertisement inviting Expression of Interest (EOI) from prospective resolution applicants (PRAs). M/s M.K. Shah Exports Ltd. challenged the eligibility criteria, specifically the minimum Tangible Net Worth (TNW) of INR 400 crores for Category 'A' PRAs. The NCLT initially ordered the RP/COC to reconsider the eligibility criteria, leading to an appeal to NCLAT, which stayed the NCLT's order. The RP then opened the EOIs received from PRAs. The RP sought an extension of time for completing the

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## Issues and analysis

### Issue 1: Whether the time period of the corporate insolvency resolution process of the Corporate Debtor …

**Ratio:** The ratio is based on the principle that Adjudicating Authorities/Appellate Tribunals

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**Reasoning:** The court reasoned that the delays caused by the legal challenges to the eligibility

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**Interpretation:** The interpretation is that the CIRP timeline is not rigid and can be adjusted

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Mr Justice PK…
- **Appellants:** CA Kannan…; C. A. Kannan…
- **Respondents:** Assam Company…; SREI Infrastructur…

## Timeline

- **2017-10-01 — Application under…**: Srei Infrastructure Finance Limited filed an application under Section 7 of the Code…
- **2017-10-26 — Insolvency Petition…**: The N.C.L.T., Guwahati, admitted the insolvency petition filed by Srei Infrastructure…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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