# In the matter of Bharati Defence and Infrastructure Ltd. IA No. 3702-2019 in CP (IB) 292(MB)-2017

> NCLT judgment dated 2020-06-22. Citation: TCN-2020-NCLT-01137. The case pertains to IA No. 3702 of 2019 in [CP (IB) 292/(MB) of 2017] before the National…

- **Court:** NCLT
- **Order date:** 22 Jun 2020
- **Citation:** TCN-2020-NCLT-01137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bharati-defence-and-infrastructure-ltd-ia-no-3702-2019-in-cp-ib-292mb-2017-f3c53ea6

## Summary

### Background

The case pertains to IA No. 3702 of 2019 in [CP (IB) 292/(MB) of 2017] before the National Company Law Tribunal, Mumbai Bench, Court No. II. The matter involves Edelweiss Asset Reconstruction Company Ltd. as the applicant and Bharati Defence & Infrastructure Ltd. as the respondent. Due to the Covid-19 pandemic, the Tribunal's work was closed, and hearings were conducted via Video Conference. The Tribunal had previously permitted Seven Star Securities India Pvt. Ltd. to deposit earnest money of Rupees 25 crores by March 31, 2020.

## Facts

The case involves IA No. 3702 of 2019 in [CP (IB) 292/(MB) of 2017]. Edelweiss Asset Reconstruction Company Ltd. is the applicant, and Bharati Defence & Infrastructure Ltd. is the respondent. The Tribunal's work was affected by the Covid-19 pandemic, leading to hearings via Video Conference. An order dated 04.03.2020 permitted Seven Star Securities India Pvt. Ltd. to deposit Rupees 25 crores as earnest money by 31.03.2020, with Rs. 5 crores due by 20.03.2020. Mr. Purohit submitted that the company could not arrange the funds due to the pandemic but undertakes to deposit Rs. 5 crores this week. The matter was adjourned to 29.06.2020 for hearing, with a strict warning regarding the deposit deadline.

## Issues and analysis

### Issue 1: Whether the Tribunal should grant an extension for depositing the earnest money due to the Covid-19 …

**Ratio:** The Tribunal has the discretion to grant extensions based on the circumstances presented,

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**Reasoning:** The court acknowledged the impact of the Covid-19 pandemic on the company's ability to

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**Interpretation:** This issue involves interpreting the Tribunal's power to modify its orders in

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**Application:** The ratio is applied to the specific facts by considering the Covid-19 pandemic

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## Parties

- **Judges:** Janab Mohammed…; RavikumarDu…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Bharati Defence…

## Timeline

- **2020-03-04 — Tribunal…**: Tribunal order permitted Seven Star Securities India Pvt. Ltd. to deposit Rupees 25…
- **2020-03-20 — Partial Deposit…**: Rs. 5 crores of the earnest…

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