# In the matter of Inter Labs (India) Private Limited CP (IB) No. 109-9-HDB-2017

> NCLT judgment dated 2020-02-25. Citation: TCN-2020-NCLT-01815. The case involves a petition filed by Dr. Reddy's Laboratories Limited against Inter Labs…

- **Court:** NCLT
- **Order date:** 25 Feb 2020
- **Citation:** TCN-2020-NCLT-01815
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/inter-labs-india-private-limited-cp-ib-no-109-9-hdb-2017-98c46ed4

## Summary

### Background

The case involves a petition filed by Dr. Reddy's Laboratories Limited against Inter Labs (India) Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was initially admitted by the NCLT on 22.08.2017, initiating the Corporate Insolvency Resolution Process (CIRP) and appointing an Interim Resolution Professional (IRP). However, this order was later set aside by the NCLAT. The matter then went to the Supreme Court, which remanded it back to the NCLAT. The NCLAT rejected the application, leading to another appeal to the Supreme Court, which restored the original order of the NCLT. The petitioner requested the tribunal to appoint an IRP and exclude the time lost in legal proceedings from the CIRP period.

## Facts

Dr. Reddy's Laboratories Limited, the Operational Creditor, filed a petition against Inter Labs (India) Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The NCLT initially admitted the petition on 22.08.2017, initiating the CIRP. An IRP was appointed. The Corporate Debtor appealed to the NCLAT, which set aside the NCLT's order. Dr. Reddy's then appealed to the Supreme Court, which remanded the matter to the NCLAT. The NCLAT rejected the application, leading to another appeal to the Supreme Court, which restored the original NCLT order. The initial IRP expressed inability to continue. The Operational Creditor failed to nominate a new IRP. The petitioner requested the tribunal to appoint an IRP and exclude the time lost

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## Issues and analysis

### Issue 1: Whether the time lost in legal proceedings …

**Ratio:** The Adjudicating Authority can exclude a certain period for the purpose of counting the

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**Reasoning:** The court noted that considerable time (more than two years) had been lost due to the

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**Interpretation:** The interpretation of the NCLAT order allows for the exclusion of time from the

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**Application:** The court applied this principle to the present case, where significant time

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** M/s Dr. Reddy's…
- **Respondents:** M/s Inter Labs…

## Timeline

- **2017-08-22 — Initial Admission of…**: NCLT admitted the petition filed under Section 9 of the Insolvency & Bankruptcy Code,…
- **2017-10-16 — NCLAT Or…**: Hon'ble NCLAT vide order set aside the order…

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