# In the matter of Sujana Universal Industries Limited IA No. 591-2020 in CP (IB) No.186-9-HDB-2019

> NCLT judgment dated 2020-09-03. Citation: TCN-2020-NCLT-00728. The case pertains to an application (IA No. 591/2020) filed in CP (IB) No. 186/9/HDB/2019 under…

- **Court:** NCLT
- **Order date:** 3 Sept 2020
- **Citation:** TCN-2020-NCLT-00728
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sujana-universal-industries-limited-ia-no-591-2020-in-cp-ib-no186-9-hdb-2019-17f21de4

## Summary

### Background

The case pertains to an application (IA No. 591/2020) filed in CP (IB) No. 186/9/HDB/2019 under Section 12(2) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 40C of the IBBI Regulations, 2016, by the Resolution Professional (RP) of M/s. Sujana Universal Industries Limited. The RP sought exclusion of the lockdown period due to the COVID-19 pandemic from the Corporate Insolvency Resolution Process (CIRP) period. The CIRP commencement was approved on 26.06.2019, and the initial 180-day period ended on 17.12.2019. The CIRP period was extended by 90 days on 12.12.2019 and further by 60 days on 17.03.2020, ending on 15.05.2020. The RP requested exclusion of the period from 23.03.2020 to 31.07.2020.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Sujana Universal Industries Limited. The CIRP commencement date was 26.06.2019. The initial 180-day CIRP period ended on 17.12.2019. The CIRP period was extended by 90 days on 12.12.2019 and further extended by 60 days on 17.03.2020, ending on 15.05.2020. The Resolution Professional (RP) filed an application (IA No. 591/2020) seeking exclusion of the period from 23.03.2020 to 31.07.2020 from the CIRP period due to the COVID-19 pandemic and the resulting lockdown imposed by the Central and State Governments. The Committee of Creditors (CoC) in its 21st meeting held on 04.07.2020, resolved to request the NCLT to extend the CIRP period, citing difficulties in coordination and voting on the

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## Issues and analysis

### Issue 1: Whether the period of lockdown due to the COVID-19 pandemic should be excluded from the Corporate …

**Ratio:** The Hon'ble Supreme Court in Committee of Creditors of Essar Steel India Limited v.

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**Reasoning:** The Adjudicating Authority considered the difficulties faced by the CoC members due to

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**Interpretation:** The court interpreted the Supreme Court's judgment to mean that the

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** Ramakrishnan…
- **Respondents:** Sujana Universal…; Sujana Universal…

## Timeline

- **2019-06-26 — CIRP Commen…**: The Adjudicating Authority approved the commencement of the Corporate Insolvency…
- **2019-12-17 — End of Initial CIRP…**: The initial period of 180 days…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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