# In the matter of Modulux Shipping Pvt. Ltd. M.A. No. 1070-2019 in CP(IB)-166(MB)-2018

> NCLT judgment dated 2019-03-27. Citation: TCN-2019-NCLT-04320. The case involves an application (M.A. No. 1070/2019) filed in CP(IB)-166(MB)/2018, seeking…

- **Court:** NCLT
- **Order date:** 27 Mar 2019
- **Citation:** TCN-2019-NCLT-04320
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/modulux-shipping-pvt-ltd-ma-no-1070-2019-in-cpib-166mb-2018-a27de703

## Summary

### Background

The case involves an application (M.A. No. 1070/2019) filed in CP(IB)-166(MB)/2018, seeking exclusion of certain periods from the computation of the Corporate Insolvency Resolution Process (CIRP) period. The Resolution Professional argued for the exclusion of three days due to a delay in the appointment of the Interim Resolution Professional (IRP) and 31 days due to a delay in receiving the certified order. The NCLT considered the guidelines issued by NCLAT in Company Appeal (AT) (Insolvency) No. 185 of 2018, specifically regarding the exclusion of intervening periods in the resolution process.

## Facts

Sikkim Ferro Alloys Ltd. is undergoing Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) filed an application (M.A. No. 1070/2019) seeking the exclusion of certain periods from the computation of the CIRP period. CP No. 166/2018 was admitted on 23.07.2018. Mr. Neelesh Gupta was appointed as the Interim Resolution Professional (IRP) on 26.07.2018, resulting in a three-day delay. The RP also contended that the certified copy of the order dated 26.10.2018 was received on 26.11.2018, causing a 31-day delay. The Committee of Creditors (CoC) decided not to continue with Mr. Neelesh Gupta as RP and appointed Mr. Dilipkumar Natvarlal Jagad as the new RP on 26.10.2018. The NCLAT in Company Appeal (AT) (Insolvency) No. 185 of 2018 (Quinn Logistics

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## Issues and analysis

### Issue 1: Whether the three-day period between the admission of the CIRP and the appointment of the IRP …

**Ratio:** The ratio is based on the principle that delays caused by non-appointment of the IRP can

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**Reasoning:** The court reasoned that there was justification for excluding the three days lost due to

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**Interpretation:** The interpretation is that any delay directly attributable to the

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**Application:** In this case, the court applied the ratio by excluding the three-day period, as

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## Parties

- **Judges:** V. P. S…
- **Appellants:** Sikkim Ferro…
- **Respondents:** Modulux Shipping…

## Timeline

- **2018-07-23 — CIRP Admi…**: CP No. 166/2018 was…
- **2018-07-26 — IRP Appoi…**: Mr. Neelesh Gupta was appointed as 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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