# In the matter of Royal Splendour Developers Pvt. Ltd. MA-880-2019 in CP-628-IB-2017

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01840. The document pertains to an application (MA/880/2019) filed in CP/628/IB/2017, seeking an…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/royal-splendour-developers-pvt-ltd-ma-880-2019-in-cp-628-ib-2017-52baf49a

## Summary

### Background

The document pertains to an application (MA/880/2019) filed in CP/628/IB/2017, seeking an extension of 90 days for the Corporate Insolvency Resolution Process (CIRP) period. The application is based on the 3rd proviso to Section 12(3) of the Insolvency & Bankruptcy Code. The resolution plan has not been approved yet, but the Resolution Professional has identified two prospective Resolution Applicants.

## Facts

An application (MA/880/2019) was filed in CP/628/IB/2017 seeking a 90-day extension of the CIRP period, based on the 3rd proviso to Section 12(3) of the Insolvency & Bankruptcy Code. The Resolution Plan has not been approved. The Resolution Professional has identified two prospective Resolution Applicants. The Resolution Professional has not received remuneration from the CoC for the last nine months. The relevance of these facts lies in the need to extend the CIRP to allow for a resolution plan to be finalized and to ensure the Resolution Professional is compensated for their work.

## Issues and analysis

### Issue 1: Whether the application for a 90-day …

**Ratio:** Section 12(3) of the Insolvency & Bankruptcy Code allows for extensions of the CIRP

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**Reasoning:** The court reasoned that since the Resolution Professional had identified two prospective

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**Interpretation:** The court interpreted Section 12(3) to allow for extensions when it facilitates

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**Application:** The court applied this interpretation to the specific facts, noting the

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Respondents:** Royal Splendour…; Bank of…
- **Advocates:** H. Karthik…

## Timeline

- **2017-01-01 — CP/628/IB/201…**: Corporate Insolvency…
- **2019-08-06 — CIRP Period St…**: Relevant date for calculating the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(3) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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