# In the matter of SIP Industries Limited IA-483-IB-2020 in IBA-709-2019

> NCLT judgment dated 2021-02-23. Citation: TCN-2021-NCLT-02946. The application IA/483/IB/2020 was filed in IBA/709/2019 under Section 12(2) of the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 23 Feb 2021
- **Citation:** TCN-2021-NCLT-02946
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sip-industries-limited-ia-483-ib-2020-in-iba-709-2019-a027495c

## Summary

### Background

The application IA/483/IB/2020 was filed in IBA/709/2019 under Section 12(2) of the IBC, 2016, read with Regulation 40 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The application sought an extension of the CIRP period by 90 days beyond 180 days and confirmation of the appointment of Mr. G. Porselvam as the Resolution Professional. The CIRP was initiated against the Corporate Debtor M/s. SIP Industries Limited on 26.08.2019, and the Applicant was appointed as the IRP. During the 1st CoC Meeting held on 03.10.2019, it was resolved that the Applicant should continue as the Resolution Professional. The CIRP process was initially expected to be completed within 180 days from the commencement date.

## Facts

The application IA/483/IB/2020 was filed in IBA/709/2019 under Section 12(2) of the IBC, 2016, read with Regulation 40 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The CIRP was initiated against M/s. SIP Industries Limited on 26.08.2019. The applicant was appointed as the IRP. The 1st CoC meeting was held on 03.10.2019, where it was resolved that the applicant should continue as the Resolution Professional. The CIRP process was to be completed within 180 days from 26.08.2019. The application sought an extension of the CIRP period by 90 days beyond 180 days and confirmation of the appointment of Mr. G. Porselvam as the Resolution Professional. The application was filed on 04.03.2020. The COVID-19 pandemic caused delays, as various

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## Issues and analysis

### Issue 1: Whether the CIRP period should be extended by 90 days beyond the initial 180 days due to the impact …

**Ratio:** Regulation 40(C) of the IBBI Insolvency Resolution Process for Corporate Persons)

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**Reasoning:** The court considered the impact of the COVID-19 pandemic and the related lockdowns on the

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**Interpretation:** Regulation 40(C) provides relief by excluding the lockdown period from the CIRP

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**Application:** Given the COVID-19 pandemic and the RP's health condition, the court applied

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** G. Pors…
- **Respondents:** M/s. SIP Industrie…
- **Advocates:** Ravi Rajag…

## Timeline

- **2019-08-26 — CIRP Init…**: CIRP was initiated against…
- **2019-10-03 — 1st CoC M…**: It was resolved that the Applicant should…

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