# In the matter of Rational Buildcon Pvt. Ltd. (IB)-1040(PB)-2018

> NCLT judgment dated 2019-05-30. Citation: TCN-2019-NCLT-03134. The case involves an application filed by the Resolution Professional seeking an extension of…

- **Court:** NCLT
- **Order date:** 30 May 2019
- **Citation:** TCN-2019-NCLT-03134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rational-buildcon-pvt-ltd-ib-1040pb-2018-a33f4a71

## Summary

### Background

The case involves an application filed by the Resolution Professional seeking an extension of time by 90 days for the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated after the admission of CP No. (IB)-1040(PB)/2018 on 05.12.2018. The extension was sought to allow the prospective resolution applicant to comply with the provisions of the Insolvency and Bankruptcy Code (IBC). The Committee of Creditors (CoC) had resolved in its meeting held on 10.05.2019 to authorize the resolution professional to file the application for extension of time.

## Facts

Edelweiss Asset Reconstruction Company Ltd. and Edelweiss Finvest Pvt. Ltd. filed an application under Section 7 of the IBC, 2016 against Rational Buildcon Pvt. Ltd., leading to the initiation of the Corporate Insolvency Resolution Process (CIRP). CP No. (IB)-1040(PB)/2018 was admitted on 05.12.2018. To encourage the prospective resolution applicant to comply with the provisions of the Code, the CoC, in its meeting held on 10.05.2019, authorized the resolution professional to file an application for a 90-day extension of the CIRP timeline, from 03.06.2019 to 01.09.2019. The CoC's decision was supported by a 100% voting share. The Resolution Professional then filed CA-1036(PB)/2019 seeking this extension.

## Issues and analysis

### Issue 1: Whether the Resolution Professional's application for a 90-day extension of the Corporate …

**Ratio:** The court may grant an extension of the CIRP timeline if it is satisfied that a case is

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**Reasoning:** The court reasoned that the extension was supported by the CoC's decision with a 100%

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**Interpretation:** Section 12(2) & (3) of the Insolvency and Bankruptcy Code, 2016 allows for

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**Application:** The court applied the ratio to the facts by considering the CoC's support and

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Rational Buildcon…

## Timeline

- **2018-12-05 — Admission of CP No.…**: CP No. (IB)-1040(PB)/2018 was admitted, initiating the Corporate Insolvency Resolution…
- **2019-05-10 — CoC Meet…**: The Committee of Creditors (CoC) resolved to authorize the resolution professional to…

## 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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