# In the matter of SEL Manufacturing Company Limited CA Nos. 773,825,826,827 & 828-2019 in CP (IB) No. 114-Chd-Pb-2017

> NCLT judgment dated 2019-10-10. Citation: TCN-2019-NCLT-01054. The Resolution Professional of SEL Manufacturing Company Limited, which is undergoing Corporate…

- **Court:** NCLT
- **Order date:** 10 Oct 2019
- **Citation:** TCN-2019-NCLT-01054
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sel-manufacturing-company-limited-ca-nos-773825826827-828-2019-in-cp-ib-no-114-c-da080e48

## Summary

### Background

The Resolution Professional of SEL Manufacturing Company Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP), filed CA No. 773/2019 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking exclusion of certain periods from the CIRP timeline. These periods include the time during which the CIRP was stayed by orders of the High Court and Supreme Court. The applicant argued that these periods should be excluded from the calculation of the maximum time limit prescribed under Section 12 of the Code. Other CAs (825/2019, 826/2019, 827/2019, and 828/2019) were also filed, primarily concerning impleadment and directions for payment of dues.

## Facts

State Bank of India, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against SEL Manufacturing Company Limited (corporate debtor) by filing CP (IB) No. 114/Chd/Pb/2017 under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority admitted the CP on 11.04.2018 and declared a moratorium. SEL Manufacturing Company Limited challenged this order before the High Court of Punjab and Haryana, which disposed of the matter on 01.05.2018, directing the corporate debtor to pursue an appeal under Section 61 of the Code. The High Court also directed the Interim Resolution Professional (IRP) not to take over management until 15.05.2018. The corporate debtor filed SLP(C) No. 11903-11904 of 2018 before the Supreme Court, which

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## Issues and analysis

### Issue 1: Whether the period from 22 June 2018 to 06 September 2019, during which the CIRP was stayed by …

**Ratio:** The ratio is based on the interpretation of Section 12 of the IBC, specifically the

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**Reasoning:** The court reasoned that the statement of objects and reasons of the Amendment Act

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**Interpretation:** The interpretation of Section 12, particularly the second and third provisos,

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**Application:** Applying the ratio to the facts, the court found that the stay period, while a

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** State Bank of…
- **Respondents:** SEL Manufacturing…

## Timeline

- **2017-01-01 — CP (IB) No. 114/Chd/Pb/2…**: CP (IB) No. 114/Chd/Pb/2017 filed by State Bank of India against SEL Manufacturing…
- **2018-04-11 — CP Admission and…**: Adjudicating Authority admitted CP (IB) No.…

## 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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