# In the matter of Richa Industries Ltd. CA No.347-2019 in CP (IB) No. 80-Chd-Hry-2018

> NCLT judgment dated 2019-06-07. Citation: TCN-2019-NCLT-03020. The application was filed by the Resolution Professional seeking an order under Section 12(2)…

- **Court:** NCLT
- **Order date:** 7 Jun 2019
- **Citation:** TCN-2019-NCLT-03020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/richa-industries-ltd-ca-no347-2019-in-cp-ib-no-80-chd-hry-2018-da6866cb

## Summary

### Background

The application was filed by the Resolution Professional seeking an order under Section 12(2) of the IBC Code for an extension of the Corporate Insolvency Resolution Process (CIRP). The CIRP of the corporate debtor, M/s Richa Industries Ltd., was initiated as per order dated 18.12.2018. The initial period of 180 days was set to expire on 19.06.2019. Eleven applicants expressed interest and were provided with the Information Memorandum, valuation matrix, and process note for submitting a Resolution Plan. The last date for submission of the plan was 02.06.2019. The 9th meeting of the Committee of Creditors (CoC) was held on 10.05.2019, where members with 84.13% of the total voting share passed a resolution directing the Resolution Applicant to file an application before

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s Richa Industries Ltd. on 2018-12-18. The initial 180-day period was set to expire on 2019-06-19. Eleven applicants expressed interest in submitting a Resolution Plan. The last date for submission of the plan was 2019-06-02. The 9th meeting of the Committee of Creditors (CoC) was held on 2019-05-10, where members holding 84.13% of the total voting share passed a resolution to file an application for an extension of the CIRP period. The Resolution Professional filed an application under Section 12(2) of the IBC Code, 2016, read with Regulation 40 of the IBBI (CIRP) Regulations, 2016, seeking a 90-day extension. The relevance of these facts lies in demonstrating the progress of the CIRP, the

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## Issues and analysis

### Issue 1: Whether the application for an extension of the Corporate Insolvency Resolution Process (CIRP) …

**Ratio:** The ratio is based on the provisions of Section 12(2) of the IBC Code, 2016, read with

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**Reasoning:** The court reasoned that the application should be allowed because the Committee of

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**Interpretation:** The interpretation of Section 12(2) and Regulation 40 is that an extension of

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** M/s Tata Blue…
- **Respondents:** M/s Richa…

## Timeline

- **2018-12-18 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) of the corporate debtor was initiated as…
- **2019-05-10 — Committee of Creditors…**: 9th meeting of the Committee of Creditors was held, where members passed a resolution to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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