# In the matter of Sandhya prakash Ltd. IA 286-2018 in CP (IB) No. 113-NCLT-AHM-2017

> NCLT judgment dated 2018-08-08. Citation: TCN-2018-NCLT-00983. The case involves an application filed under Section 60(5) of the IB Code seeking exemption of…

- **Court:** NCLT
- **Order date:** 8 Aug 2018
- **Citation:** TCN-2018-NCLT-00983
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sandhya-prakash-ltd-ia-286-2018-in-cp-ib-no-113-nclt-ahm-2017-0c8665ce

## Summary

### Background

The case involves an application filed under Section 60(5) of the IB Code seeking exemption of a certain period in light of averments made in paragraph No. 17 of the application and to clarify the last date of the Corporate Insolvency Resolution Period (CIRP). The application was admitted on 14.09.2017. As no resolution plan could be materialized within the initial 180-day CIRP period, the Resolution Professional (RP) filed an application (I.A. 82 of 2018) for liquidation. During the pendency of the liquidation application, the Corporate Debtor company sought an extension of 90 days to complete CIRP, based on a direction from the Adjudicating Authority on 09.05.2018 for the RP and COC to reconsider claims and grievances. The COC then requested members to vote on

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## Facts

The JM Financial Asset Reconstruction Company Ltd. initiated proceedings against Sandhya Prakash Ltd. under the Insolvency and Bankruptcy Code. The CIRP was initiated on 14.09.2017. Due to the inability to materialize a resolution plan within the initial 180 days, the RP filed a liquidation application (I.A. 82 of 2018) on 07.03.2018. The Corporate Debtor sought an extension of 90 days to complete the CIRP. The Adjudicating Authority directed the RP and COC to reconsider claims and grievances on 09.05.2018. The COC requested members to vote on extending the CIRP. The RP filed an application (I.A. 188 of 2018) for extension of CIRP. The COC passed a resolution for extension of time. The liquidation application was disposed of as infructuous. The applicant prayed for

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should exempt the period consumed during the pendency of I.A. …

**Ratio:** The Adjudicating Authority has the power to grant exemptions for certain periods based on

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**Reasoning:** The court reasoned that the period consumed during the pendency of the applications (I.A.

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**Interpretation:** This issue involves the interpretation of the Adjudicating Authority's

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**Application:** The ratio was applied to the specific facts by exempting the period from

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## Parties

- **Judges:** Manorama…
- **Appellants:** Sandeep…
- **Respondents:** Sandhya Prakash…; Vishal…

## Timeline

- **2017-09-14 — Application A…**: The instant application…
- **2018-03-07 — Liquidation Application…**: Resolution Professional (RP) filed application being I.A. 82 of 2018 for liquidation of…

## 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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