# In the matter of Divine Vidyut Ltd. IA(IB) No. 433-KB-2020 in CP (IB) No. 891-KB-2018

> NCLT judgment dated 2020-03-17. Citation: TCN-2020-NCLT-01485. The case involves an application filed by the Resolution Professional (RP) under Section 12(2)…

- **Court:** NCLT
- **Order date:** 17 Mar 2020
- **Citation:** TCN-2020-NCLT-01485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/divine-vidyut-ltd-iaib-no-433-kb-2020-in-cp-ib-no-891-kb-2018-0403d94c

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12(2) of the Insolvency & Bankruptcy Code, 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days. The initial 180-day CIRP period expired on 16/03/2020. The Committee of Creditors (CoC) unanimously approved the extension in its 6th meeting held on 29th February 2020.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Divine Vidyut Ltd. The initial 180-day CIRP period expired on 16/03/2020. The Resolution Professional (RP) filed an application under Section 12(2) of the Insolvency & Bankruptcy Code, 2016, seeking a 90-day extension of the CIRP period. Three Expressions of Interest (EoI) were received from interested parties. The Committee of Creditors (CoC) unanimously approved the extension in its 6th meeting held on 29th February 2020. The prospective Resolution Applicants sought 45 days to prepare the Resolution Plan. The RP stated that extending the CIRP would enable him to resolve and explore maximization of the stressed assets of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the application for extension of the CIRP period by 90 days under Section 12(2) of the …

**Ratio:** Section 12(2) of the Insolvency & Bankruptcy Code, 2016, allows for the extension of

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**Reasoning:** The court considered the submissions of the RP, the approval of the CoC, and the fact

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

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**Application:** The court applied the ratio of Section 12(2) to the facts of the case, noting

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** Divine Vidy…

## Timeline

- **2020-02-25 — Fixed Date for…**: The date fixed for…
- **2020-02-29 — CoC Meet…**: The 6th CoC Meeting was held, and the extension of the CIRP period was unanimously…

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