# In the matter of Nandlal Kamal Kishore Vyapaar Private Limited IA No. 529-KB-2021 in CP (IB) No. 1568-KB-2019

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01502. The Resolution Professional (RP) filed IA/529/KB/2021 under section 60(5) of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01502
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nandlal-kamal-kishore-vyapaar-private-limited-ia-no-529-kb-2021-in-cp-ib-no-1568-48444d82

## Summary

### Background

The Resolution Professional (RP) filed IA/529/KB/2021 under section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking exclusion of a period starting from the commencement of the Corporate Insolvency Resolution Process (CIRP) until the availability of books of accounts and details from the personnel of the Corporate Debtor. The RP argued that due to the non-availability of information and books of accounts, they were unable to form an opinion under regulation 35A of the CIRP Regulations, which pertains to forming an opinion on preferential, undervalued, extortionate, or fraudulent transactions. The Committee of Creditors (CoC) suggested that the RP form an opinion before appointing a transaction auditor.

## Facts

The Resolution Professional (RP) filed an application (IA/529/KB/2021) seeking exclusion of time from the Corporate Insolvency Resolution Process (CIRP) period. The RP claimed that the exclusion was necessary because the books of accounts and details from the Corporate Debtor were unavailable, hindering the formation of an opinion under regulation 35A of the CIRP Regulations regarding preferential, undervalued, extortionate, or fraudulent transactions. The Committee of Creditors (CoC) had suggested that the RP form an opinion before appointing a transaction auditor. The CIRP commenced on 2021-02-02. The RP contacted the suspended board of directors via email and speed post to obtain possession of assets, books of accounts, and other required details, but they failed to

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) is entitled to an exclusion of time from the Corporate …

**Ratio:** The Adjudicating Authority has discretion to enlarge the time for completion of CIRP, but

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**Reasoning:** The court reasoned that the RP's application for exclusion of time was based on an

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**Interpretation:** The court interpreted that the RP has a duty to proactively and diligently

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**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Onemax Yarn…
- **Respondents:** Nandlal Kamal…

## Timeline

- **2021-02-02 — Commencement…**: The Corporate Insolvency…
- **2021-03-23 — Application under…**: RP filed an application under section 19(2) before the Adjudicating Authority due to…

## 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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