# In the matter of Pawar Electro Systems Private Limited IA 737-2020 IN  C.P. (IB) 1587-MB-2019

> NCLT judgment dated 2020-03-04. Citation: TCN-2020-NCLT-01647. The case involves an application (IA 737/2020) filed in C.P.(IB) 1587/MB/2019 before the…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01647
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pawar-electro-systems-private-limited-ia-737-2020-in-cp-ib-1587-mb-2019-6650c90e

## Summary

### Background

The case involves an application (IA 737/2020) filed in C.P.(IB) 1587/MB/2019 before the National Company Law Tribunal (NCLT), Mumbai Bench. The application was filed by the Resolution Professional (RP) seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period under Section 12 of the Insolvency and Bankruptcy Code (IBC), 2016. The application is based on a resolution passed by the Committee of Creditors (CoC) in a meeting held on 15.02.2020, with a 100% vote share.

## Facts

IDBI Bank Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Pawar Electro Systems Private Limited. The Resolution Professional (RP) filed an application (IA 737/2020) in C.P.(IB) 1587/MB/2019 seeking an extension of the CIRP period under Section 12 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was supported by a resolution passed by the Committee of Creditors (CoC) with a 100% vote share in a meeting held on February 15, 2020. The applicant's counsel submitted that the CIRP period was ending on March 21, 2020, and requested a 90-day extension. The relevance of these facts is that they form the basis for the NCLT's decision to extend the CIRP period.

## Issues and analysis

### Issue 1: Whether the application for extension of the CIRP period should be allowed under Section 12 of the …

**Ratio:** Section 12 of the Insolvency and Bankruptcy Code, 2016, governs the timeline for

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**Reasoning:** The court reasoned that the application for extension was in consonance with Section 12

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**Interpretation:** Section 12 of the IBC is interpreted to allow for extensions of the CIRP period

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**Application:** In this case, the CoC approved the extension with a 100% vote share, and the

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** IDBI Bank L…
- **Respondents:** Pawar Electro…

## Timeline

- **2020-02-15 — CoC Meet…**: The Committee of Creditors (CoC) held a meeting and passed a resolution with a 100% vote…
- **2020-03-04 — Order Shee…**: Date of the order sheet of the hearing of Mumbai Bench of the National Company Law…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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