# In the matter of MBS Impex Pvt. Ltd. IA No. 797-2020 in CP (IB) No. 407-7-HDB-2019

> NCLT judgment dated 2020-10-13. Citation: TCN-2020-NCLT-00401. The case involves an application filed by the Resolution Professional (RP) of MBS Impex Pvt…

- **Court:** NCLT
- **Order date:** 13 Oct 2020
- **Citation:** TCN-2020-NCLT-00401
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mbs-impex-pvt-ltd-ia-no-797-2020-in-cp-ib-no-407-7-hdb-2019-1142b3b5

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of MBS Impex Pvt Ltd, seeking exclusion of the lockdown period due to COVID-19 from the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated by ICICI Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The RP faced non-cooperation from the Corporate Debtor in providing necessary information and records for the CIRP. The RP also sought directions from the Tribunal to the respondents (directors of the Corporate Debtor) to extend cooperation and hand over custody of assets and accounting records.

## Facts

ICICI Bank Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against MBS Impex Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 13.11.2019, and Mr. Sridhar Venkatraya Sundararaja was appointed as the Interim Resolution Professional (IRP). Later, Mr. Santosh Bhatia was appointed as the Resolution Professional (RP). The RP filed an Interlocutory Application (IA No. 797/2020) seeking exclusion of the lockdown period (25.03.2020 to 30.09.2020) due to COVID-19 from the CIRP timeline. The RP claimed non-cooperation from the Corporate Debtor in providing necessary information and records. The Central Government issued orders prescribing lockdown in all parts of the country from 25.03.2020, which was further

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## Issues and analysis

### Issue 1: Whether the lockdown period due to COVID-19 should be excluded from the Corporate Insolvency …

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

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**Reasoning:** The Tribunal considered the Central Government orders prescribing lockdown and the IBBI's

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**Interpretation:** Regulation 40C provides a specific exception to the standard CIRP timelines in

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**Application:** The Tribunal applied Regulation 40C to the facts of the case, excluding the

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Appellants:** Santosh B…
- **Respondents:** MBS Impex P…; Sukesh…

## Timeline

- **2019-11-13 — CIRP Init…**: Petition admitted, and Mr.Sridhar…
- **2020-01-09 — Second COC…**: IRP informed COC that Books of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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