# 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-01489. The case pertains to an application filed by the Resolution Professional (RP) under Section…

- **Court:** NCLT
- **Order date:** 17 Mar 2020
- **Citation:** TCN-2020-NCLT-01489
- **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-2018-80cef2c0

## Summary

### Background

The case pertains to 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 Resolution Professional (RP) filed an application under Section 12(2) of the Insolvency & Bankruptcy Code, 2016, seeking a 90-day extension of the Corporate Insolvency Resolution Process (CIRP) period. The initial 180-day CIRP period expired on 16/03/2020. Three Expressions of Interest (EoI) were received from interested parties. The submission of the Resolution Plan was initially fixed for 25/02/2020, but prospective Resolution Applicants requested 45 additional days to prepare the plan. The Committee of Creditors (CoC) unanimously approved the extension in its 6th meeting held on 29th February 2020. The RP argued that the extension would enable him to resolve and explore maximization of the stressed assets of the Corporate Debtor. The 6th Progress Report was

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## 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 Resolution Professional (RP) and the

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

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

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## Parties

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

## Timeline

- **2020-02-25 — Original Deadline for…**: The initial date fixed for the…
- **2020-02-29 — CoC Approval for CIRP…**: The Committee of Creditors (CoC) unanimously approved the extension of the CIRP period in…

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