# In the matter of National Plywood Industries Limited CP (IB) 9-GB-2018

> NCLT judgment dated 2020-04-27. Citation: TCN-2020-NCLT-01405. The case involves an application for extending the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 27 Apr 2020
- **Citation:** TCN-2020-NCLT-01405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/national-plywood-industries-limited-cp-ib-9-gb-2018-ba6a4ebd

## Summary

### Background

The case involves an application for extending the Corporate Insolvency Resolution Process (CIRP) period for National Plywood Industries Limited (NPIL). The CIRP was initiated based on an order dated 26.08.2019. The Interim Resolution Professional (IRP) requested an extension of the 180-day CIRP period, which expired on 22.02.2020. An appeal was filed before the NCLAT challenging the initiation of CIRP, which was initially decided in favor of the Corporate Debtor but later set aside by the Supreme Court, directing the NCLAT to reconsider the matter. The Resolution Professional (RP) sought an extension of 90 days, along with a compensatory period of 25 days due to a status quo order and additional time due to the nationwide lockdown.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against National Plywood Industries Limited (NPIL) based on an order dated 26.08.2019. The 180-day CIRP period expired on 22.02.2020. An appeal was filed before the NCLAT challenging the initiation of CIRP, alleging it was filed beyond the limitation period. The NCLAT initially ruled that the application was within limitation, but the Supreme Court set aside this order and directed the NCLAT to reconsider the matter. A status quo order was in effect for a period of 25 days, during which the Corporate Debtor observed complete inaction. The Resolution Professional (RP) conducted a Committee of Creditors (CoC) meeting on 25.03.2020, where 71.05% of the CoC members voted in favor of applying for an extension

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## Issues and analysis

### Issue 1: Whether the application for extension of the CIRP period under Section 12(2) of the Insolvency and …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code, 2016, allows for the extension of

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**Reasoning:** The court considered the disruption caused by the coronavirus pandemic and the status quo

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**Interpretation:** Section 12(2) provides a mechanism to extend the CIRP period in exceptional

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**Application:** The court applied Section 12(2) to the specific facts of the case, considering

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## Parties

- **Judges:** Jinan…
- **Appellants:** M/s. Stressed…
- **Respondents:** National Plywood…

## Timeline

- **2019-08-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against National Plywood…
- **2019-11-25 — NCLAT Or…**: NCLAT passed an order stating that the application filed with the Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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