# In the matter of KSL and Industries Ltd. IA No. 784 of 2020 in CP(IB) No. 397-9-NCLT-AHM-2018

> NCLT judgment dated 2020-11-24. Citation: TCN-2020-NCLT-00220. The case involves an application (IA No. 784 of 2020) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 24 Nov 2020
- **Citation:** TCN-2020-NCLT-00220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ksl-and-industries-ltd-ia-no-784-of-2020-in-cpib-no-397-9-nclt-ahm-2018-97261747

## Summary

### Background

The case involves an application (IA No. 784 of 2020) filed in connection with a Corporate Insolvency Resolution Process (CIRP) for KSL Industries Ltd. The Resolution Professional (RP), Mr. Kiran Shah, sought an extension of the CIRP period by 233 days, arguing that legal proceedings and non-cooperation from secured financial creditors had significantly delayed the process. The CIRP had commenced on 06.09.2019, and even after excluding a lockdown period of 68 days, the maximum CIRP period of 330 days had expired on 08.10.2020. The RP's appointment was necessitated by a stalemate among the Committee of Creditors (CoC) regarding voting shares, leading the Adjudicating Authority to appoint an independent RP. The erstwhile IRP, Mr. Anil Kumar, had filed an appeal before

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## Facts

The Corporate Insolvency Resolution Process (CIRP) for KSL Industries Ltd. commenced on 06.09.2019. Kiran Shah was appointed as the independent Resolution Professional (RP) on 28.07.2020, following a stalemate among the Committee of Creditors (CoC) regarding voting shares. The maximum CIRP period of 330 days expired on 08.10.2020, even after excluding a 68-day lockdown period. The RP filed IA No. 784 of 2020 seeking a 233-day extension of the CIRP period, citing delays caused by legal proceedings and non-cooperation from secured financial creditors. The erstwhile IRP, Anil Kumar, had filed an appeal before the NCLAT, resulting in a status quo order that was misinterpreted by the secured financial creditors, obstructing the CIRP. The NCLAT clarified that the status quo

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant an extension of 233 days to the CIRP period, …

**Ratio:** The ratio is based on the principle that the Adjudicating Authority has the discretion to

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**Reasoning:** The court reasoned that the delays in this case were primarily due to legal proceedings

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**Interpretation:** This issue involves the interpretation of the statutory provisions governing

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Kiran…
- **Respondents:** KSL Industr…

## Timeline

- **2019-09-06 — CIRP Commen…**: The Corporate Insolvency Resolution Process…
- **2020-03-04 — 90-Day Extensio…**: The Adjudicating Authority granted a 90-day extension of the CIRP via an order dated…

## 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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