# In the matter of Khyati Foods Pvt. Ltd. IA 32-2020 in CP(IB) 115-2019

> NCLT judgment dated 2020-02-13. Citation: TCN-2020-NCLT-01972. The Resolution Professional of the Corporate Debtor filed an IA under Section 12(2) of the…

- **Court:** NCLT
- **Order date:** 13 Feb 2020
- **Citation:** TCN-2020-NCLT-01972
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khyati-foods-pvt-ltd-ia-32-2020-in-cpib-115-2019-96ef8296

## Summary

### Background

The Resolution Professional of the Corporate Debtor filed an IA under Section 12(2) of the Insolvency & Bankruptcy Code, 2016, seeking an extension of time for the Corporate Insolvency Resolution Process. The CoC passed a resolution in its fifth meeting dated 17.01.2020 to seek an extension of time. The CoC members consented to the extension of the Corporate Insolvency Resolution Process by 90 days beyond the initial 180 days, with 84% majority voting.

## Facts

The Resolution Professional (RP) for Khyati Food Pvt Ltd filed an Interlocutory Application (IA) seeking an extension of time for the Corporate Insolvency Resolution Process (CIRP) under Section 12(2) of the Insolvency and Bankruptcy Code (IBC), 2016. The CIRP period of 180 days had expired on 21.01.2020. The application was filed on 03.02.2020. The Committee of Creditors (CoC) had passed a resolution on 17.01.2020 in its fifth meeting to seek the extension. The CoC members consented to a 90-day extension beyond the initial 180 days with 84% majority voting. The court found sufficient reasons to grant the extension, considering the request bonafide and convincing.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant an extension of time for the Corporate Insolvency …

**Ratio:** Section 12(2) of the Insolvency & Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court found that the applicant had shown sufficient reasons for seeking an extension

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**Interpretation:** Section 12(2) provides the Adjudicating Authority with the power to extend the

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**Application:** The court applied Section 12(2) to the facts of the case, noting that the CoC

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Parag Sheth RP…
- **Respondents:** Khyati Food Pvt.…; Khyati Food Pvt…

## Timeline

- **2020-01-17 — CoC Meet…**: The CoC passed a resolution in its fifth meeting to seek an extension of time for the…
- **2020-01-21 — CIRP Exp…**: The initial 180-day Corporate Insolvency…

## 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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