# In the matter of Essar Power Jharkhand Limited IA-2767-2021 in (IB)-25(PB)-2018

> NCLT judgment dated 2021-07-27. Citation: TCN-2021-NCLT-01592. The application IA/2767/2021 was filed under Regulation 44(2) of The Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Jul 2021
- **Citation:** TCN-2021-NCLT-01592
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/essar-power-jharkhand-limited-ia-2767-2021-in-ib-25pb-2018-4e8eefdc

## Summary

### Background

The application IA/2767/2021 was filed under Regulation 44(2) of The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking an exclusion of 80 days from March 26, 2021, to June 13, 2021, for the computation of the statutory period of one year from the liquidation process of the Corporate Debtor due to the Covid-19 pandemic. It also sought a further extension of the time period for one year from September 2, 2021, to September 1, 2022, for the successful completion of the Liquidation process of the Corporate Debtor. An order for liquidation of the Corporate Debtor was passed on January 3, 2020, and Mr. Huzefa Fakhri Sitabkhan was appointed as Liquidator. The statutory period of one year of the Liquidation process and the extension

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## Facts

ICICI Bank Limited is the Financial Creditor. Essar Power Jharkhand Limited is the Corporate Debtor. Huzefa Fakhri Sitabkhan is the Liquidator/Applicant. An order for the liquidation of the Corporate Debtor was passed on 2020-01-03. The liquidator sought an exclusion of 80 days from 2021-03-26 to 2021-06-13 due to the Covid-19 pandemic and related restrictions. The liquidator also sought a further extension of one year from 2021-09-02 to 2022-09-01 for the liquidation process. The statutory period of one year for the liquidation process and the extension order expired on 2021-06-13. The application was filed under section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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## Issues and analysis

### Issue 1: Whether the time period from March 26, 2021, to June 13, 2021, should be excluded from the …

**Ratio:** Regulation 47A of the Liquidation Regulations allows for consideration of the time period

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**Reasoning:** The court considered the advisories from MHA (Govt. of India) and the Government of

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**Interpretation:** The court interpreted Regulation 47A to allow for exclusion of time periods

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**Application:** The court applied this interpretation to the specific facts of the case,

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## Parties

- **Judges:** SH. BHASKARA…; Sh. Hemant Kumar…
- **Appellants:** Huzefa Fakhri…
- **Respondents:** Essar Power…

## Timeline

- **2020-01-03 — Liquidation…**: An order for liquidation of the…
- **2021-03-26 — Start of Exclusion…**: Start date for the exclusion of time period sought by the Liquidator due to Covid-19…

## 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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