# In the matter of STT Limited IA-50(CHE)-2021 in IBA-838-2019

> NCLT judgment dated 2021-05-05. Citation: TCN-2021-NCLT-02201. The case involves an application filed under Section 60(5) of the IBC, 2016, read with…

- **Court:** NCLT
- **Order date:** 5 May 2021
- **Citation:** TCN-2021-NCLT-02201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stt-limited-ia-50che-2021-in-iba-838-2019-b5e2b726

## Summary

### Background

The case involves an application filed under Section 60(5) of the IBC, 2016, read with Regulation 44 of the IBBI (Liquidation Process) Regulations 2016 and Rule 11 of NCLT Rules, 2016, seeking an order to exclude a period of 221 days from the liquidation period. The applicant, the liquidator of M/s. STT Limited, requested the exclusion of the period from 2020-03-24 to 2020-10-31 from the liquidation period. The CIRP was initiated on 2019-08-30, and the applicant was appointed as the IRP and later as the Resolution Professional. An order for liquidation of the Corporate Debtor was passed on 2019-12-10. The Corporate Debtor had initiated an arbitration proceeding against NTPC Limited in 2008, which remained unresolved for over 10 years, leading to the Corporate Debtor's

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## Facts

The liquidator of M/s. STT Limited filed an application under Section 60(5) of the IBC, 2016, seeking to exclude a period of 221 days (from 2020-03-24 to 2020-10-31) from the liquidation period. The Corporate Debtor, M/s. STT Limited, was admitted into CIRP on 2019-08-30, and the applicant was appointed as the IRP and later as the Resolution Professional. An order for liquidation was passed on 2019-12-10. Prior to the CIRP, the Corporate Debtor had initiated an arbitration proceeding against NTPC Limited in 2008 for breach of contract, claiming Rs.9.71 Crores in damages. NTPC Limited filed a counter claim of Rs.8.74 along with interest. The arbitration remained unresolved for over 10 years, and the Corporate Debtor was unable to pay the Arbitral Tribunal's fees of

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## Issues and analysis

### Issue 1: Whether the period from 2020-03-24 to 2020-10-31 should be excluded from the liquidation period of …

**Ratio:** Regulation 47AA of the IBBI (Liquidation Process) Regulations, 2016, allows for the

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**Reasoning:** The Adjudicating Authority, after perusing the documents, was of the view that as per

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**Interpretation:** Regulation 47AA provides a mechanism to adjust the liquidation timeline in

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**Application:** The Adjudicating Authority applied Regulation 47AA to the facts of the case,

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** P. SR…
- **Respondents:** M/s. STT L…
- **Advocates:** S. Sathyana…

## Timeline

- **2008-01-01 — Arbitration I…**: Corporate Debtor initiated…
- **2018-01-01 — Non-Payment S…**: Non-payment to Arbitral Tribunal suspended due…

## 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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