# In the matter of Assam Company India Ltd. I.A. No.16-2018 IN CP (IB)-16-20-GB-2017

> NCLT judgment dated 2018-04-06. Citation: TCN-2018-NCLT-01586. The case involves an application seeking an extension of time for the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 6 Apr 2018
- **Citation:** TCN-2018-NCLT-01586
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/assam-company-india-ltd-ia-no16-2018-in-cp-ib-16-20-gb-2017-319456ca

## Summary

### Background

The case involves an application seeking an extension of time for the Corporate Insolvency Resolution Process (CIRP) of a Corporate Debtor. The Resolution Professional (RP) faced difficulties in completing the CIRP within the initial 180 days due to delays in appointment and the complexity of the Corporate Debtor's operations, which include tea estates and oil and gas exploration. The Committee of Creditors (COC) also took a significant amount of time to appoint the RP. Amendments to the CIRP regulations further complicated the process.

## Facts

The Resolution Professional (RP) faced difficulties in completing the Corporate Insolvency Resolution Process (CIRP) within the initial 180 days. The Committee of Creditors (COC) took 77 days to appoint the RP, leaving only 102 days for the RP to complete the process. The Corporate Debtor's operations are spread over 14 tea estates and include oil and gas exploration, making data collation complex. The Insolvency and Bankruptcy Board of India (IBBI) amended the CIRP Regulations, introducing fair valuation and evaluation matrix concepts, adding to the RP's workload. The RP sought an extension of 90 days to complete the CIRP, supported by a 93.34% vote from the COC. The Corporate Debtor, Assam Company India Limited, employs over 23,000 laborers, making liquidation

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant an extension of time for the completion of the …

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

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**Reasoning:** The court reasoned that the RP faced significant difficulties in completing the CIRP

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**Interpretation:** Section 12 of the IBC allows for a one-time extension of the CIRP period by up

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**Application:** The court applied the ratio of Section 12 to the specific facts of the case,

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## Parties

- **Judges:** P. K. S…
- **Appellants:** C. A. Kannan…

## Timeline

- **2018-02-28 — 5th Meeting of the…**: The 5th Meeting of the Committee of Creditors discussed the application for extension of…
- **2018-04-06 — Date of…**: Date of the order passed by the National…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12 — Time-limit for completion of insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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