# In the matter of Fortuna  (India) Projects Private Limited I.A. No. 71 of 2021 in C.P.(IB)No. 131-BB-2017

> NCLT judgment dated 2021-03-17. Citation: TCN-2021-NCLT-02663. The case involves an application (I.A. No.71 of 2021) filed in an ongoing Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 17 Mar 2021
- **Citation:** TCN-2021-NCLT-02663
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortuna-india-projects-private-limited-ia-no-71-of-2021-in-cpibno-131-bb-2017-a4950a37

## Summary

### Background

The case involves an application (I.A. No.71 of 2021) filed in an ongoing Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Fortuna (India) Projects Private Limited. The CIRP was initiated based on a petition by Reliance Capital AIF Trustee Company Private Limited. After the failure of the CIRP, the corporate debtor was placed under liquidation, and a liquidator was appointed. The liquidator faced challenges due to the COVID-19 pandemic and issues with the corporate debtor's assets, including title issues and difficulties in selling immovable property. The liquidator sought an extension of time to complete the liquidation process.

## Facts

Reliance Capital AIF Trustee Company Private Limited filed a company petition (C.P.(IB)No.131/BB/2017) under Section 7 of the IBC, 2016, to initiate CIRP against Fortuna (India) Projects Private Limited. The Adjudicating Authority admitted the petition on 09.08.2019, initiating CIRP and appointing an IRP. Subsequently, due to the absence of a viable resolution plan, the Corporate Debtor was placed under liquidation on 25.10.2019, and a liquidator was appointed. The liquidator made public announcements and invited claims from creditors. The COVID-19 pandemic, starting 15.03.2020, caused a national lockdown, hindering the liquidation process. The liquidator sought exclusion of 120 days, granted on 11.11.2020. An auction of the Corporate Debtor's immovable property on

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## Issues and analysis

### Issue 1: Whether the liquidator is entitled to an extension of time to complete the liquidation process of …

**Ratio:** The provisions of the Code and Rules mandate that CIRP/Liquidation should be concluded

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**Reasoning:** The court considered the challenges faced by the liquidator, including the impact of the

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**Interpretation:** The interpretation of the Code and Rules allows for flexibility in timelines

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**Application:** The court applied the ratio to the facts of the case, considering the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Shivadutt B…
- **Respondents:** Fortuna (India)…

## Timeline

- **2017-01-01 — Company Petiti…**: Reliance Capital AIF Trustee Company Private Limited filed C.P.(IB)No.131/BB/2017 under…
- **2019-08-09 — CIRP Init…**: The Adjudicating Authority admitted the…

## 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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