# In the matter of Enestee Engineering Limited IA-1261-MB-2021 IN CP 2925-MB-2018

> NCLT judgment dated 2021-06-17. Citation: TCN-2021-NCLT-01958. IA 1261 of 2021 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, seeking an…

- **Court:** NCLT
- **Order date:** 17 Jun 2021
- **Citation:** TCN-2021-NCLT-01958
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/enestee-engineering-limited-ia-1261-mb-2021-in-cp-2925-mb-2018-a8506cf3

## Summary

### Background

IA 1261 of 2021 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, seeking an extension of time for the payment of approximately Rs. 18.23 crores, which represents the balance consideration for the purchase of the Corporate Debtor's assets on a slum sale basis. This sale was a result of an auction conducted by the official liquidator, as per a notice dated 20.02.2021. The applicant, declared the highest bidder on 23.03.2021, had deposited 10% of the total bid amount (approximately Rs. 2.02 crores) as earnest money on 12.03.2021. According to the tender's terms, the balance amount was to be deposited within 90 days, with a 12% per annum interest applicable after the first 30 days.

## Facts

The Corporate Debtor's assets were put up for auction by the official liquidator. The applicant emerged as the highest bidder on 23.03.2021. The applicant had deposited 10% of the total bid amount (Rs. 2.02 crores) as earnest money on 12.03.2021. The balance amount of Rs. 18.23 crores was to be paid within 90 days as per the tender conditions, with a 12% interest applicable after the first 30 days. The applicant sought a 60-day extension to pay the remaining amount due to a family illness. The liquidator stated they lacked the power to extend the deadline under the IBC. The relevance of these facts lies in determining whether the applicant should be granted an extension to fulfill their payment obligations, considering the circumstances and the provisions of the IBC.

## Issues and analysis

### Issue 1: Whether the applicant should be granted an extension of time to pay the balance consideration for …

**Ratio:** The ratio is based on the court's inherent power to grant extensions in appropriate

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**Reasoning:** The court reasoned that the applicant's request for an extension was justified due to the

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**Interpretation:** The interpretation involves understanding the scope of Section 60(5) of the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Chandra Bha…; SUCHITRAKAN…
- **Appellants:** JSK Corporation…
- **Respondents:** Enestee Engineerin…

## Timeline

- **2021-02-20 — Auction Noti…**: Official liquidator issued a notice for the…
- **2021-03-12 — Earnest Money…**: The applicant deposited 10% of the total bid…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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