# n the matter of Priyadarsini Limited IA No. 513, 625, 730-731 889--2020 in CP (IB) No. 369-10-HDB-2019

> NCLT judgment dated 2020-10-06. Citation: TCN-2020-NCLT-00454. The application, IA No. 730 of 2020, was filed by the Resolution Professional under Section 40C…

- **Court:** NCLT
- **Order date:** 6 Oct 2020
- **Citation:** TCN-2020-NCLT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/n-the-matter-of-priyadarsini-limited-ia-no-513-625-730-731-889-2020-in-cp-ib-no-073caae4

## Summary

### Background

The application, IA No. 730 of 2020, was filed by the Resolution Professional under Section 40C of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2020, seeking exclusion of the lockdown period from 21.03.2020 to 31.08.2020 in the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor, Priyadarsini Limited. The Tribunal had admitted the main petition, CP (IB) No. 369/10/HDB/2019, filed by the Corporate Applicant/ M/s Priyadarsini Limited vide order dated 03.09.2019. The applicant herein replaced Shri J. Manivannan as IRP vide order dated 12.12.2019 passed in IA No.1125 of 2019 by this Tribunal.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Priyadarsini Limited. The CIRP period of 180 days commenced on 03.09.2019 and ended on 01.03.2020. The Tribunal extended the CIRP period for 90 days vide order dated 28.02.2020 in IA No. 192 of 2020, which was to expire on 31.05.2020. The Government of India declared a lockdown due to the COVID-19 pandemic from 24.03.2020, and the Government of Telangana declared a lockdown from 21.03.2020. The IBBI introduced and inserted Regulation 40C in the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2020. The Resolution Professional received Expressions of Interest (EoIs) belatedly from two or three interested prospective Resolution Applicants. The Resolution Professional filed an

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## Issues and analysis

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

**Ratio:** Regulation 40C of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The Tribunal considered the submissions of the Resolution Professional and the relevant

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**Interpretation:** Regulation 40C provides a mechanism to address the disruptions caused by

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**Application:** The Tribunal applied Regulation 40C to the facts of the case and excluded the

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## Parties

- **Judges:** K. Anantha…; Veera Brahma Rao…
- **Appellants:** Krishnamohan…
- **Respondents:** Priyadarsi…
- **Advocates:** Shabbeer…

## Timeline

- **2019-09-03 — Admission of Main…**: The Tribunal admitted the main petition, CP (IB) No. 369/10/HDB/2019, filed by the…
- **2019-12-12 — Replacement…**: The applicant, Krishna Mohan Gollamudi, replaced Shri J. Manivannan as the Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(3) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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