# In the matter of Baghauli Sugar and' Distillery Ltd. IA No. 283-2020 in CP No. (IB) 342-ALD-2018

> NCLT judgment dated 2020-11-19. Citation: TCN-2020-NCLT-00238. The case involves an application (IA No.283/2020) filed in CP No.(IB) 342/ALD/2018 under…

- **Court:** NCLT
- **Order date:** 19 Nov 2020
- **Citation:** TCN-2020-NCLT-00238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baghauli-sugar-and-distillery-ltd-ia-no-283-2020-in-cp-no-ib-342-ald-2018-2fb8c61e

## Summary

### Background

The case involves an application (IA No.283/2020) filed in CP No.(IB) 342/ALD/2018 under Section 12(2) of the Insolvency and Bankruptcy Code (IBC), seeking an extension of the Corporate Insolvency Resolution Process (CIRP) for a period of 90 days beyond the initial 180 days. The matter was heard through video conferencing.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Baghauli Sugar & Distillery Ltd. An application, IA No.283/2020, was filed in CP No.(IB) 342/ALD/2018 under Section 12(2) of the IBC, seeking an extension of the CIRP for 90 days beyond the initial 180 days. The Committee of Creditors (CoC) approved the resolution for the extension with 72.73% voting strength in its 6th meeting held on 07.11.2020. The applicant's counsel contended that the extension was necessary. The court considered the submissions and the CoC's approval.

## Issues and analysis

### Issue 1: Whether the extension of the Corporate Insolvency Resolution Process (CIRP) period for 90 days …

**Ratio:** Section 12(2) of the IBC allows for the extension of the CIRP period beyond 180 days,

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**Reasoning:** The court reasoned that the CoC had approved the resolution for the extension with a

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**Interpretation:** Section 12(2) of the IBC is interpreted to allow for flexibility in the CIRP

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**Application:** In this case, the CoC's approval with 72.73% voting strength was a key factor

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## Parties

- **Judges:** Rajesh Daya…
- **Respondents:** BAGHAULI SUGAR &…

## Timeline

- **2020-11-19 — Hearing…**: Hearing of the Allahabad Bench of the National Company Law Tribunal through video…
- **2020-11-07 — CoC Meet…**: The Committee of Creditors (CoC) approved the resolution for grant of extension by 72.73%…

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