# In the matter of Prabhat Telecoms (India) Ltd. IA No. 1038-2020 in CP (IB) No. 1874-2019

> NCLT judgment dated 2020-08-10. Citation: TCN-2020-NCLT-00872. The case pertains to an application filed by the Resolution Professional (RP) of Prabhat…

- **Court:** NCLT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLT-00872
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prabhat-telecoms-india-ltd-ia-no-1038-2020-in-cp-ib-no-1874-2019-e17d7d05

## Summary

### Background

The case pertains to an application filed by the Resolution Professional (RP) of Prabhat Technologies (India) Limited, formerly known as Prabhat Telecoms (I) Ltd, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period. The CIRP was initiated following the admission of a Section 7 application filed by a Financial Creditor. The RP was appointed, and a public announcement was made to invite claims from creditors. The Committee of Creditors (CoC) was formed, and several meetings were held to discuss the classification of creditors and invite Expressions of Interest (EOI) from prospective resolution applicants. Due to the COVID-19 pandemic and subsequent lockdowns, the CIRP period was impacted, leading to the current application for extension.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Prabhat Technologies (India) Limited commenced on 10.10.2019, following the admission of a Section 7 application by a Financial Creditor. Rajendra K Bhuta was appointed as the Resolution Professional (RP). A public announcement was made on 21.10.2019, inviting claims from creditors, with a deadline of 04.11.2019. The Committee of Creditors (CoC) was formed, and meetings were held on 30.11.2019 and 13.12.2019 to discuss creditor classification and invite Expressions of Interest (EOI) from potential resolution applicants. Only one EOI was received initially, leading to a second cycle of EOI advertisement on 24.02.2020, with a submission deadline of 10.03.2020. A prospective resolution applicant (PRA) requested an

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## Issues and analysis

### Issue 1: Whether the CIRP period of Prabhat Technologies …

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

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**Reasoning:** The NCLT considered the submissions made by the Resolution Professional (RP) and the

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

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**Application:** In this case, the NCLT found that the COVID-19 pandemic and the lockdown had

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## Parties

- **Judges:** Janab Mohammed…; RavikumarDu…
- **Appellants:** Rajendra K.…
- **Respondents:** Prabhat Technologi…; Prabhat Technologi…

## Timeline

- **2019-10-10 — CIRP Commen…**: CIRP of Prabhat Technologies…
- **2019-10-21 — Public Annou…**: Public announcement inviting…

## 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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