# In the matter of Rei Agro Ltd. CA No. 364-KB-2017

> NCLT judgment dated 2017-08-24. Citation: TCN-2017-NCLT-00528. The case involves an application filed by the Resolution Professional seeking an extension of…

- **Court:** NCLT
- **Order date:** 24 Aug 2017
- **Citation:** TCN-2017-NCLT-00528
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rei-agro-ltd-ca-no-364-kb-2017-80acb9a9

## Summary

### Background

The case involves an application filed by the Resolution Professional seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period for REI Agro Ltd. The CIRP was initiated by Surendra Kumar Joshi, an Operational Creditor, due to unpaid salary dues. The Resolution Professional argued that an extension was necessary because valuers appointed by the Interim Resolution Professional (IRP) could not deliver their reports on time due to the widespread locations of the corporate debtor's assets. Additionally, UCO Bank received a provisional attachment order from the Directorate of Enforcement, Delhi, attaching the corporate debtor's assets under the Foreign Exchange Management Act and Prevention of Money Laundering Act. The CBI is also investigating the

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## Facts

Surendra Kumar Joshi, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against REI Agro Ltd. due to unpaid salary dues of Rs. 10,20,437/-. The Corporate Debtor acknowledged these dues. The Resolution Professional (RP) sought an extension of the CIRP period beyond the initial 180 days. The Committee of Creditors (CoC) approved the extension with 75.18% voting share. The RP cited delays in valuation reports due to the widespread location of assets, a provisional attachment order from the Directorate of Enforcement, and an ongoing CBI investigation as reasons for the extension. The UCO Bank received a provisional attachment order dated 10th July 2017 from Directorate of Enforcement, Delhi, Ministry of Finance, Government of India, New

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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 Insolvency & Bankruptcy Code, 2016, authorizes the Adjudicating

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**Reasoning:** The court considered the reasons provided by the Resolution Professional (RP) for seeking

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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 RP, while valid,

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## Parties

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

## Timeline

- **2017-02-27 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against REI Agro Ltd. by the…
- **2017-05-18 — Appointment of…**: Resolution Professional appointed by an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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