# In the matter of REI AGRO LIMITED

> NCLT judgment dated 2017-08-24. Citation: TCN-2017-NCLT-00523. The case involves an application for the extension of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 24 Aug 2017
- **Citation:** TCN-2017-NCLT-00523
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rei-agro-limited-1efcc2e0

## Summary

### Background

The case involves an application for the extension of the Corporate Insolvency Resolution Process (CIRP) period for REI Agro Ltd. The CIRP was initiated by an Operational Creditor, Surendra Kumar Joshi, due to unpaid salary dues. The Resolution Professional sought an extension of 90 days beyond the initial 180-day period. The Committee of Creditors (CoC) approved the extension with 75.18% voting share. However, the Resolution Professional cited reasons such as delays in valuation reports, attachment of assets by the Enforcement Directorate, and CBI investigation as hindering the completion of the resolution process within the stipulated time.

## Facts

Surendra Kumar Joshi, an Operational Creditor, initiated the Corporate Insolvency Resolution Process (CIRP) against REI Agro Ltd. due to unpaid salary dues of Rs. 10,20,437. The Corporate Debtor acknowledged the dues. The Resolution Professional (RP) filed an application to extend the CIRP period by 90 days beyond the initial 180 days, citing delays in valuation reports, attachment of assets by the Enforcement Directorate, and a CBI investigation. The Committee of Creditors (CoC) approved the extension with 75.18% voting share. The RP admitted claims of Rs. 8,593.96 crores from creditors. The Corporate Debtor owns 51 Wind Turbine Generators (WTGs), but only 18 are operational. The Enforcement Directorate attached the assets of the Corporate Debtor under the Foreign

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant an extension of the Corporate Insolvency Resolution …

**Ratio:** Section 12(2) of the IBC authorizes the Adjudicating Authority to extend the CIRP period

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**Reasoning:** The court reasoned that despite the CoC's approval for extension, no resolution plan was

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**Interpretation:** Section 12(2) provides a mechanism for extending the CIRP period, but it is not

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**Application:** In this case, the court found that the reasons provided by the Resolution

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## Parties

- **Judges:** Vijai Prata…; Jinan…
- **Respondents:** REI Agro L…; REI Agro…

## Timeline

- **2016-01-01 — Enactment of Insolvency…**: The Insolvency and Bankruptcy…
- **2017-02-27 — Admission of CIRP…**: The petition for initiation of Corporate Insolvency Resolution Process was admitted by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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