# In the matter of Sainath Estates Private Limited IA No.686-2020 in CP (IB) No. 651-7-HDB-2018

> NCLT judgment dated 2020-09-10. Citation: TCN-2020-NCLT-00656. The interlocutory application IA No. 686/2020 was filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 10 Sept 2020
- **Citation:** TCN-2020-NCLT-00656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sainath-estates-private-limited-ia-no686-2020-in-cp-ib-no-651-7-hdb-2018-80e19d76

## Summary

### Background

The interlocutory application IA No. 686/2020 was filed by the Resolution Professional (RP) under Section 12 of the Insolvency and Bankruptcy Code, 2016, seeking exclusion of the lockdown period (25.03.2020 to 31.07.2020, totaling 128 days) from the maximum Corporate Insolvency Resolution Process (CIRP) period of 330 days. The CIRP against the corporate debtor, Sainath Estates Private Limited, commenced on 08.07.2019, and Dr. K.V. Srinivas was appointed as the Interim Resolution Professional (IRP), later continuing as the RP after approval from the Committee of Creditors (COC) and the Adjudicating Authority. The RP invited Expressions of Interest (EOI) from prospective Resolution Applicants, with a submission deadline of 05.12.2019. Three EOIs were received, with two

…

## Facts

The Corporate Insolvency Resolution Process (CIRP) commenced against Sainath Estates Private Limited on 08.07.2019. Dr. K.V. Srinivas was appointed as the Interim Resolution Professional (IRP) and later continued as the Resolution Professional (RP). To find a resolution plan, the RP invited Expressions of Interest (EOI) from prospective Resolution Applicants. The initial deadline for EOI submission was 05.12.2019. Three EOIs were received, but only two met the eligibility criteria. The Committee of Creditors (COC) decided to reissue Form G and seek a 90-day extension of the CIRP, which the Tribunal granted on 21.02.2020. After the second Form G issuance, two more EOIs were received, bringing the total to five. Of these, three qualified, but one withdrew, leaving two

…

## Issues and analysis

### Issue 1: Whether the lockdown period from 25.03.2020 to 31.07.2020 should be excluded from the maximum CIRP …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation

…

**Reasoning:** The Tribunal reasoned that the COVID-19 pandemic and the subsequent lockdown imposed by

…

**Interpretation:** The interpretation of Section 12(2) of the IBC and Regulation 40(c) of the IBBI

…

**Application:** In this specific case, the Tribunal determined that the actual days lost due to

…

## Parties

- **Judges:** Ratakonda…; Veera Brahma Rao…
- **Appellants:** Dr.K.V.Sr…
- **Respondents:** Sainath Estates…; M/s. Sainath…

## Timeline

- **2019-07-08 — CIRP Commen…**: CIRP commenced against…
- **2019-12-05 — EOI Submission…**: Initial deadline for submission of Expression of Interest (EOI) from prospective…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sainath-estates-private-limited-ia-no686-2020-in-cp-ib-no-651-7-hdb-2018-80e19d76