# 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-01498. 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-01498
- **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-f3e8e655

## 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) had 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 in the Corporate Insolvency Resolution Process (CIRP) of Nandlal Kamal Kishore Vyapaar Private Limited. The RP argued that they could not form an opinion under regulation 35A of the CIRP Regulations due to the non-availability of books of accounts and details from the Corporate Debtor's personnel. The Committee of Creditors (CoC) had suggested that the RP form an opinion before appointing a transaction auditor. The CIRP commenced on 02.02.2021. The RP claims to have contacted the suspended board of directors via email and speed post, but they failed to provide the necessary information. An application under section 19(2) of the IBC, addressing non-cooperation, was filed but

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant the Resolution Professional's application for …

**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 explanation for seeking exclusion of time was

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**Interpretation:** The court interpreted that the RP cannot seek exclusion of time merely because

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**Application:** In this case, the court found that the RP had not diligently pursued their

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## Parties

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

## Timeline

- **2021-02-02 — Commencement…**: The Corporate Insolvency Resolution Process (CIRP) commenced for Nandlal Kamal Kishore…
- **2021-03-23 — Application under…**: The Resolution Professional (RP) filed an application under section 19(2) of the IBC…

## 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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