# In the matter of Su Kam Power Systems Ltd. (IB)-540-(PB)-2017

> NCLT judgment dated 2018-09-05. Citation: TCN-2018-NCLT-00819. This case involves an application filed under Section 12(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Sept 2018
- **Citation:** TCN-2018-NCLT-00819
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/su-kam-power-systems-ltd-ib-540-pb-2017-727fb578

## Summary

### Background

This case involves an application filed under Section 12(2) of the Insolvency and Bankruptcy Code (IBC) seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period for the corporate debtor, Su Kam Power Systems Ltd., by 90 days. The application was supported by a resolution passed by the Committee of Creditors (CoC) in its 4th meeting. The CoC sought the extension to allow more time for resolution plan submissions, citing delays due to transporter strikes and the need for potential resolution applicants to conduct thorough due diligence. The CIRP was initiated on 05.04.2018, and the initial 180-day period was set to end on 02.10.2018. An 'expression of interest' was floated on 04.06.2018, with a deadline of 18.06.2018, but no resolution plan was

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## Facts

The State Bank of India initiated Corporate Insolvency Resolution Process (CIRP) against Su Kam Power Systems Ltd. The CIRP was initiated on 05.04.2018, with an initial period of 180 days ending on 02.10.2018. An 'expression of interest' was floated on 04.06.2018, with a deadline of 18.06.2018. The Committee of Creditors (CoC) passed a resolution to extend the deadline for submission of resolution plans from 10th August, 2018 to 31st August, 2018, due to delays caused by transporter strikes and the need for potential resolution applicants to conduct thorough due diligence. The Resolution Professional (RP) informed the CoC about the requests from potential resolution applicants for an extension of the submission deadline. The CoC then authorized the RP to file an

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## Issues and analysis

### Issue 1: Whether the extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code (IBC) allows for the extension of the

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**Reasoning:** The court considered the reasons provided by the CoC for seeking the extension, including

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**Interpretation:** Section 12(2) provides a mechanism for extending the CIRP period when

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**Application:** The court applied Section 12(2) to the facts of the case, considering the CoC's

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** State Bank of…
- **Respondents:** Su Kam Power…

## Timeline

- **2018-04-05 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Su Kam Power Systems…
- **2018-06-04 — Expression of Interest…**: An 'expression of interest' was floated inviting interest in the assets of the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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