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

> NCLT judgment dated 2019-05-30. Citation: TCN-2019-NCLT-03132. The case involves an application filed by the Resolution Professional to extend the time period…

- **Court:** NCLT
- **Order date:** 30 May 2019
- **Citation:** TCN-2019-NCLT-03132
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rational-buildcon-pvt-ltd-ib-1040pb-2018-aad25351

## Summary

### Background

The case involves an application filed by the Resolution Professional to extend the time period for the Corporate Insolvency Resolution Process (CIRP) for a further 90 days, from 2019-06-03 to 2019-09-01, under Section 12(2) & (3) of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated after the admission of CP No. (IB)-1040(PB)/2018 on 2018-12-05. The Committee of Creditors (CoC), in its meeting held on 2019-05-10, authorized the resolution professional to file the application for extension of time to encourage the prospective resolution applicant to comply with the provisions of the Code, including Sections 25(2)(h) and 29A.

## 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). The CIRP commenced after CP No. (IB)-1040(PB)/2018 was admitted on 2018-12-05. The Resolution Professional subsequently filed an application seeking a 90-day extension of the CIRP timeline, from 2019-06-03 to 2019-09-01, as per Section 12(2) & (3) of the IBC. The CoC, in its meeting on 2019-05-10, supported the extension to allow the resolution applicant to comply with Sections 25(2)(h) and 29A of the Code. The extension was approved with a 100% voting share.

## Issues and analysis

### Issue 1: Whether the application for extension of time for the Corporate Insolvency Resolution Process …

**Ratio:** The court can grant an extension of time for the CIRP if it is satisfied that a case is

…

**Reasoning:** The court considered the application and noted that the CoC supported the extension with

…

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

…

**Application:** In this case, the court applied the ratio by considering the CoC's support for

…

## 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) held a meeting and authorized the resolution…

## 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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