# In the matter of SPM Auto Pvt. Ltd. IB-433-ND-2017

> NCLT judgment dated 2020-07-27. Citation: TCN-2020-NCLT-00965. The case pertains to M/s Regal Metal & Ferro Alloys as the petitioner and M/s SPM Auto Pvt.…

- **Court:** NCLT
- **Order date:** 27 Jul 2020
- **Citation:** TCN-2020-NCLT-00965
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spm-auto-pvt-ltd-ib-433-nd-2017-090f4d52

## Summary

### Background

The case pertains to M/s Regal Metal & Ferro Alloys as the petitioner and M/s SPM Auto Pvt. Ltd. as the respondent. The matter is under Section 9 of the IBC. The Learned Counsel for the Liquidator requested for 10 days' time. The Learned Counsel for the SIDBI submitted that the Auction Purchase Report has been filed and that an amount of Rs. 4,10,00,2000/- has been received as sale consideration. The liquidator is required to share all the stakeholders meeting has to be conducted. The liquidator has submitted that the other stakeholders also (Canara Bank and Corporation Bank) have to attend for the meeting.

## Facts

M/s Regal Metal & Ferro Alloys initiated proceedings against M/s SPM Auto Pvt. Ltd. under Section 9 of the IBC. The Liquidator sought a 10-day extension to convene a stakeholder meeting to discuss the distribution of Rs. 4,10,00,2000/- received from the auction sale. SIDBI's counsel submitted the Auction Purchase Report. The other stakeholders, including Canara Bank and Corporation Bank, are required to attend the meeting. The relevance of the facts is to ensure proper distribution of funds received from the auction sale and to allow all stakeholders to participate in the decision-making process.

## Issues and analysis

### Issue 1: Whether the Liquidator should be granted additional time to convene a meeting with stakeholders …

**Ratio:** A liquidator may be granted reasonable time to fulfill their duties, including convening

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**Reasoning:** The court considered the Liquidator's request for additional time to convene a meeting

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**Interpretation:** The interpretation is that the court has the discretion to grant reasonable

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**Application:** The court applied the principle of granting reasonable time to the Liquidator

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** M/s Regal Metal &…
- **Respondents:** M/s SPM Auto Pvt.…
- **Advocates:** M.M. Ab…; Pardeep D…; +1 more

## Timeline

- **2020-07-27 — Order Del…**: Order delivered on…
- **2020-08-10 — Next Hearin…**: Matter posted to 10th…

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