# In the matter of Krishna Industrial Corporation Limited IA(IBC)-857(CHE)-2021 in CP-1053-IB-2018

> NCLT judgment dated 21 Oct 2022. Citation: TCN-2022-NCLT-00634. This case involves three applications filed before the National Company Law Tribunal (NCLT),…

- **Court:** NCLT
- **Order date:** 21 Oct 2022
- **Citation:** TCN-2022-NCLT-00634
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krishna-industrial-corporation-limited-iaibc-857che-2021-in-cp-1053-ib-2018-b9ef3bf5

## Summary

### Background

This case involves three applications filed before the National Company Law Tribunal (NCLT), Division Bench – I, Chennai, concerning the liquidation of Krishna Industrial Corporation Limited (KICL). The primary dispute revolves around the realization of a secured asset, an immovable property, and the payment of liquidation costs. Andhra Pradesh State Financial Corporation (APSFC), a secured creditor, initially sought clarification on its liability for liquidation costs and an extension to sell the secured asset. The Liquidator, S. Rajendran, filed an application seeking possession of the asset from APSFC, arguing that APSFC had failed to realize the asset within the stipulated time and contribute to liquidation costs. Maximus ARC Limited, another applicant, sought directions for the recovery of its dues from the sale proceeds of the corporate debtor's property.

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## Facts

The Corporate Debtor, Krishna Industrial Corporation Limited (KICL), was ordered to be liquidated by the Tribunal on July 27, 2020, in IA/418/2020. Following this, the Liquidator issued a public announcement inviting claims from stakeholders as per the provisions of the IBC. Andhra Pradesh State Financial Corporation (APSFC) submitted its claims in Form-D on August 25, 2020, for a sum of Rs. 4,52,15,993/-.

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## Issues and analysis

### Issue 1: Whether Andhra Pradesh State Financial Corporation (APSFC) is entitled to a further extension of…

**Ratio:** A secured creditor who has opted to realize its security interest under **Section 52 of…

**Reasoning:** The Tribunal found that APSFC had already been granted a three-month extension, which…

**Interpretation:** The court interpreted the provisions related to secured creditors' rights to…

**Application:** Given that APSFC failed to sell the asset within the initial three-month…

## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Advocates:** Sasank…; Yajura…; +1 more

## Timeline

- **July 27, 2020 — Liquidation…**: The Corporate Debtor, Krishna Industrial Corporation Limited (KICL), was ordered to be…
- **August 25, 2020 — Claim Subm…**: Andhra Pradesh State Financial Corporation (APSFC) submitted its claims before the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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