# In the matter of Kapico Motors India Pvt. Ltd. IA-755-CHE-2021 in IBA-355-2020

> NCLT judgment dated 2021-09-07. Citation: TCN-2021-NCLT-01171. The application IA/755/CHE/2021 was filed in the National Company Law Tribunal, Chennai, under…

- **Court:** NCLT
- **Order date:** 7 Sept 2021
- **Citation:** TCN-2021-NCLT-01171
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kapico-motors-india-pvt-ltd-ia-755-che-2021-in-iba-355-2020-0ac0e8f0

## Summary

### Background

The application IA/755/CHE/2021 was filed in the National Company Law Tribunal, Chennai, under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) of M/s. Kapico Motors India Pvt. Ltd. The CIRP was initiated on 28.01.2021. The applicant, Kannan Sambasivam, the Resolution Professional, sought exclusion of 74 days (21.04.2021 to 04.07.2021) from the CIRP timeline due to a lockdown imposed because of the Covid-19 pandemic.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Kapico Motors India Private Limited on 28.01.2021. Kannan Sambasivam was appointed as the Interim Resolution Professional. The applicant received the order of admission by email from the Registry of the Tribunal on 19.03.2021. Public announcement was made on 22.03.2021. The IRP received two claims from the Financial Creditor. The Committee of Creditors (CoC) was constituted, and its first meeting was held on 20.04.2021, where the applicant was appointed as the Resolution Professional. Due to the Covid-19 pandemic and subsequent lockdown, the applicant was unable to carry out the CIRP effectively. The second CoC meeting was conducted on 05.07.2021. The CoC passed a resolution to file an

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## Issues and analysis

### Issue 1: Whether the period of lockdown imposed due to the Covid-19 pandemic should be excluded from the …

**Ratio:** Regulation 40C of the IBBI (Insolvency Resolution Process for Corporate Persons)

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**Reasoning:** The court reasoned that in view of Regulation 40C of the IBBI Regulations, the period

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**Interpretation:** Regulation 40C is interpreted to mean that any lockdown period that prevents

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**Application:** The court applied Regulation 40C to the facts of the case, noting that the

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Kannan Samb…
- **Respondents:** M/s. Kapico…
- **Advocates:** V. Maniv…

## Timeline

- **2021-01-28 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Kapico Motors…
- **2021-03-19 — Order of Ad…**: Applicant received the order of admission by…

## 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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