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

> NCLT judgment dated 2017-08-24. Citation: TCN-2017-NCLT-00527. The case involves an application for the extension of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 24 Aug 2017
- **Citation:** TCN-2017-NCLT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rei-agro-ltd-ca-no-364-kb-2017-e2f51abd

## 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 Surendra Kumar Joshi, an Operational Creditor, due to unpaid salary dues. The Resolution Professional sought an extension beyond the initial 180 days, citing reasons such as delays in valuation reports and investigations by the CBI and Enforcement Directorate regarding the corporate debtor's assets. The Committee of Creditors (CoC) had approved the extension in its meeting. The Adjudicating Authority is considering the extension request.

## 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 CIRP was initiated on 27.02.2017. The Resolution Professional (RP) sought an extension of the CIRP period beyond the initial 180 days, citing delays in valuation reports, investigations by the CBI and Enforcement Directorate (ED), and attachment of the Corporate Debtor's assets by the ED under the Foreign Exchange Management Act and Prevention of Money Laundering Act. 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. REI Agro Ltd. owns 51 Wind Turbine

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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 Adjudicating Authority reasoned that despite the CoC's approval, there was no

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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 Adjudicating Authority found that the reasons for seeking the

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## Parties

- **Judges:** Vijai Prata…; Jinan…
- **Respondents:** REI Agro L…; REI Agro…
- **Advocates:** Dripto Ma…; Amrita P…

## Timeline

- **2016-01-01 — Enactment of Insolvency and Bankruptcy Code,…**: The Insolvency and…
- **2017-02-27 — Initiation…**: Corporate Insolvency Resolution Process…

## 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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