# In the matter of Associated Appliances Limited IA-3689-2020 in IB-1413(ND)-2018

> NCLT judgment dated 2020-09-28. Citation: TCN-2020-NCLT-00522. The case pertains to I.A-3689/2020 filed in IB-1413/ND/2018. The CIR process was initiated on…

- **Court:** NCLT
- **Order date:** 28 Sept 2020
- **Citation:** TCN-2020-NCLT-00522
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/associated-appliances-limited-ia-3689-2020-in-ib-1413nd-2018-9d6e19ba

## Summary

### Background

The case pertains to I.A-3689/2020 filed in IB-1413/ND/2018. The CIR process was initiated on 2019-04-02. Due to unavoidable circumstances and litigation, the 120-day period could not be utilized for making progress in the CIR process. An order was passed on 2020-02-03, excluding the 120-day period. The maximum period of 330 days was to expire on 2020-07-09. However, the lockdown commenced from 2020-03-24 till 2020-05-31, and further restrictions continued till 2020-07-31.

## Facts

The CIR process for Associated Appliances Limited was initiated on 2019-04-02. Due to litigation and unavoidable circumstances, the 120-day period for the CIR process could not be utilized. An order was passed on 2020-02-03 excluding the 120-day period. The maximum period of 330 days was to expire on 2020-07-09. A lockdown was imposed from 2020-03-24 to 2020-05-31, with further restrictions until 2020-07-31. The Resolution Professional filed I.A-3689/2020 seeking an extension of time due to the disruptions caused by the lockdown. The relevance of the lockdown is that it prevented progress in the CIR process, justifying the need for an extension.

## Issues and analysis

### Issue 1: Whether the period of lockdown and related restrictions should be excluded from the maximum period …

**Ratio:** The ratio is that periods of disruption caused by extraordinary circumstances, such as a

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**Reasoning:** The court reasoned that the lockdown and related restrictions imposed due to the pandemic

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**Interpretation:** This interprets the IBC provisions related to timelines in the context of

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**Application:** The court applied this reasoning to the specific facts of the case, where the

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** RSP Stamping…
- **Respondents:** Associated…

## Timeline

- **2019-04-02 — CIR Process In…**: The Corporate Insolvency Resolution Process (CIRP) was initiated for Associated…
- **2020-02-03 — Order Excluding 120-Day…**: An order was passed excluding the 120-day period from the CIRP timeline due to…

## 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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