# In the matter of Dynamic Shells (India) Pvt. Ltd. (IB)-718(PB)-2018

> NCLT judgment dated 2019-03-28. Citation: TCN-2019-NCLT-04288. The case involves an application filed by the Resolution Professional (RP) under Section 12(2)…

- **Court:** NCLT
- **Order date:** 28 Mar 2019
- **Citation:** TCN-2019-NCLT-04288
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dynamic-shells-india-pvt-ltd-ib-718pb-2018-05e7820c

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period beyond 180 days for Dynamic Shells (India) Private Limited. The Committee of Creditors (CoC) discussed difficulties encountered during the CIRP in its 4th meeting on March 20, 2019. The CoC considered extending the CIRP period to allow the RP to complete various activities, including examining Expressions of Interest (EOIs) received, issuing a provisional list of Prospective Resolution Applicants (PRAs), and issuing a Request for Resolution Plan (RFRP) document. The CoC also explored debt resolution possibilities and advised the Chairman to file

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## Facts

Punjab National Bank initiated the Corporate Insolvency Resolution Process (CIRP) against Dynamic Shells (India) Private Limited. The initial 180-day CIRP period was set to expire on March 26, 2019. The Resolution Professional (RP) filed an application under Section 12(2) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking an extension of the CIRP period. The Committee of Creditors (CoC) held its 4th meeting on March 20, 2019, to discuss the progress of the CIRP and the need for an extension. The CoC considered the difficulties encountered during the CIRP, including the examination of Expressions of Interest (EOIs) received and the issuance of a Request for Resolution Plan (RFRP) document. The CoC also explored debt resolution possibilities. The CoC resolved to

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## Issues and analysis

### Issue 1: Whether the NCLT was justified in extending the Corporate Insolvency Resolution Process (CIRP) …

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

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**Reasoning:** The NCLT considered the application filed by the Resolution Professional (RP) and the

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**Interpretation:** Section 12(2) of the IBC provides a mechanism for extending the CIRP period

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**Application:** In this case, the NCLT applied Section 12(2) of the IBC to the facts presented

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Punjab National…
- **Respondents:** Dynamic Shells…
- **Advocates:** Ashu Ka…; Milan Sing…

## Timeline

- **2019-03-20 — CoC 4th M…**: The Committee of Creditors (CoC) held its 4th meeting to discuss the progress of the…
- **2019-03-26 — Original CIRP…**: The initial 180-day Corporate Insolvency Resolution Process (CIRP) period was set to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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