# In the matter of Kanishk Gold Pvt. Ltd. IA-401 & 451-CHE-2021 in IBA-920-2019

> NCLT judgment dated 2021-12-17. Citation: TCN-2021-NCLT-00139. The case involves applications IA/451/CHE/2021 and IA/401/CHE/2021 filed in IBA/920/2019…

- **Court:** NCLT
- **Order date:** 17 Dec 2021
- **Citation:** TCN-2021-NCLT-00139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kanishk-gold-pvt-ltd-ia-401-451-che-2021-in-iba-920-2019-3f71823d

## Summary

### Background

The case involves applications IA/451/CHE/2021 and IA/401/CHE/2021 filed in IBA/920/2019 concerning Kanishk Gold Pvt. Ltd. IA/451/CHE/2021 was filed by the Resolution Applicant seeking an extension of the CIRP timeline and exclusion of the COVID-19 lockdown period. IA/401/CHE/2021 was filed by the Resolution Professional seeking liquidation of the Corporate Debtor.

## Facts

The CIRP against Kanishk Gold Pvt. Ltd. was initiated by the State Bank of India under Section 7 of the IBC, 2016, vide order dated 2020-01-22. The Applicant was appointed as the Interim Resolution Professional. A public announcement was made, and 14 financial creditors filed claims. The first CoC meeting was held on 2020-02-24, where the IRP was confirmed as the RP. Subsequent CoC meetings were held to discuss the resolution process, including the publication of EOI. Despite efforts, no resolution plan was received. The Corporate Debtor's unit remained closed for over two years. The CoC resolved to file for liquidation under section 33(2) of the IBC, 2016. The CoC fixed the remuneration of the Liquidator at 65% of fee as per Regulation 4 (2) (b) of the IBC

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## Issues and analysis

### Issue 1: Whether the extension of the CIRP timeline and exclusion of the COVID-19 lockdown period should be …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code, 2016, allows for the extension of

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**Reasoning:** The court considered the submissions made by the Applicant and the recommendations of the

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**Interpretation:** The provision allows for flexibility in the CIRP timeline to account for

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**Application:** The court allowed the application, recognizing the need to extend the CIRP

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Ebenezar I…
- **Respondents:** Kanishk Gold Pvt.…

## Timeline

- **2020-01-22 — CIRP Init…**: CIRP initiated against Kanishk Gold Pvt. Ltd. by State Bank of India under Section 7 of…
- **2020-02-24 — First COC M…**: First COC meeting held;…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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