# In the matter of Kalpataru Steel Rolling Mills Ltd. (IB)-563(PB)-2018

> NCLT judgment dated 2019-02-05. Citation: TCN-2019-NCLT-05005. This case involves an application filed under Section 12(2) of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Feb 2019
- **Citation:** TCN-2019-NCLT-05005
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kalpataru-steel-rolling-mills-ltd-ib-563pb-2018-c6181283

## Summary

### Background

This case involves an application filed under Section 12(2) of the Insolvency & Bankruptcy Code, read with Rule 11 of the Hon'ble National Company Law Tribunal Rules, 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days beyond 09.02.2019. The initial 180-day period was nearing its end. The application was supported by a resolution passed by the Committee of Creditors (CoC) during its 6th meeting held on 31.01.2019.

## Facts

Andra Bank initiated insolvency proceedings against Kalpataru Steel Rolling Mills Ltd. An application was filed to extend the Corporate Insolvency Resolution Process (CIRP) period by 90 days beyond February 9, 2019, as the initial 180-day period was about to expire. The Committee of Creditors (CoC) supported this extension through a resolution passed in their 6th meeting on January 31, 2019. The resolution plan, as per the amendment dated January 24, 2019, needed to be submitted by the resolution plan applicant and the CoC. The CoC authorized the resolution professional to file the application for extension. The CoC passed the resolution with a majority of 66.13%.

## Issues and analysis

### Issue 1: Whether sufficient cause exists to extend the Corporate Insolvency Resolution Process (CIRP) period …

**Ratio:** The primary objective of the Insolvency & Bankruptcy Code, 2016, is to resolve

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**Reasoning:** The court reasoned that the resolution passed by the Committee of Creditors (CoC) with a

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**Interpretation:** Section 12(2) of the Insolvency & Bankruptcy Code allows for the extension

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**Application:** The court applied the ratio by considering the CoC's resolution and the

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## Parties

- **Judges:** M. M. K…; Pradeep R.…
- **Appellants:** Andra…
- **Respondents:** Kalpataru Steel…

## Timeline

- **2019-01-24 — Amendment…**: Amendment requiring the resolution plan to be submitted by the resolution plan applicant…
- **2019-01-31 — CoC Meet…**: The Committee of Creditors held its 6th meeting and passed a resolution supporting the…

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