# In the matter of Sainsons Pulp and Papers Ltd. IA No. 394-2020 & 395-2020 in CP (IB) No. 486-Chd-Hry-2019

> NCLT judgment dated 2020-09-15. Citation: TCN-2020-NCLT-00622. The case pertains to IA No. 394/2020 and 395/2020 in CP (IB) No. 486/Chd/Hry/2019, an admitted…

- **Court:** NCLT
- **Order date:** 15 Sept 2020
- **Citation:** TCN-2020-NCLT-00622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sainsons-pulp-and-papers-ltd-ia-no-394-2020-395-2020-in-cp-ib-no-486-chd-hry-201-1ac87dd4

## Summary

### Background

The case pertains to IA No. 394/2020 and 395/2020 in CP (IB) No. 486/Chd/Hry/2019, an admitted matter under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Resolution Professional of M/s Sainsons Pulp and Papers Limited filed IA No. 395/2020 seeking exclusion of the lockdown period from 23.03.2020 to 31.07.2020 from the CIRP period. The CIRP was initiated against the corporate debtor when CP (IB) No. 486/Chd/Hry/2019 was admitted on 03.03.2020. Due to the Covid-19 pandemic and the nationwide lockdown, the initial period of 180 days expired on 30.08.2020, and the resolution of the corporate debtor could not be completed.

## Facts

M/s Sainsons Pulp and Papers Limited is the financial creditor. Manjul Mittal is the Resolution Professional and applicant. CP (IB) No. 486/Chd/Hry/2019 was admitted on 03.03.2020, initiating the CIRP against the corporate debtor. Due to the Covid-19 pandemic and the nationwide lockdown imposed from 25.03.2020 to 31.07.2020, the initial 180-day period for the CIRP expired on 30.08.2020, and the resolution process could not be completed. IA No. 395/2020 was filed seeking exclusion of the lockdown period from the CIRP timeline. The Supreme Court in Suo Motu Writ Petition (Civil) No(s).3/2020 extended the period of limitation. The NCLAT in Suo Moto-Company Appeal (AT) (Insolvency) No.01 of 2020 addressed the hardships faced due to the lockdown. The IBBI inserted

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## Issues and analysis

### Issue 1: Whether the period of lockdown imposed due to the Covid-19 pandemic should be excluded from the …

**Ratio:** The ratio is based on the principle that force majeure events, such as a pandemic and

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**Reasoning:** The court reasoned that the Covid-19 pandemic and the ensuing lockdown imposed

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**Interpretation:** The legal issue is interpreted in the context of the Covid-19 pandemic as a

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

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## Parties

- **Judges:** RaghuNa…; Ajay Kumar…
- **Appellants:** Manjul M…
- **Respondents:** Sainsons Pulp and…

## Timeline

- **2019-01-01 — CP (IB) No. 486/Chd/Hry/…**: CP (IB) No. 486/Chd/Hry/…
- **2020-03-03 — Admission of CP (IB)…**: CP (IB) No. 486/Chd/Hry/2019 was admitted, initiating the CIRP against the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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