# 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-00729. 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-00729
- **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-2019-5af6b2dc

## 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. The application was filed by the Resolution Professional (RP) of M/s. Sujana Universal Industries Limited, seeking exclusion of the lockdown period due to the COVID-19 pandemic from the Corporate Insolvency Resolution Process (CIRP) period. The CIRP was initiated based on an application filed under Section 9 of the IBC, 2016, and the initial RP was later replaced. The CIRP period had already been extended previously. The Committee of Creditors (CoC) had resolved to request the NCLT to extend the CIRP period to facilitate the submission of a resolution

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## Facts

M/s. Sujana Universal Industries Limited is undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated based on an application filed under Section 9 of the IBC, 2016. Mr. Nethi Mallikarjuna Setty was initially appointed as the Interim Resolution Professional (IRP) and later replaced by Mr. Ramakrishnan Sadasivan as the Resolution Professional (RP). The CIRP period was initially 180 days, which was extended by 90 days and then by another 60 days. The Committee of Creditors (CoC) is largely located in Chennai and Mumbai, which were under lockdown due to the COVID-19 pandemic. One of the prospective resolution applicants is based in Singapore, which was also affected by the pandemic. The CoC, in its 21st meeting held on 04.07.2020, resolved to

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 12 of the IBC, 2016, Regulation 40C

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**Reasoning:** The court reasoned that the COVID-19 pandemic and the resulting lockdown created

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**Interpretation:** The interpretation involves understanding that the IBC aims to resolve

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

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## Parties

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

## Timeline

- **2019-06-26 — Commencement…**: The Adjudicating Authority approved the commencement of CIRP vide its order dated…
- **2019-12-12 — Extension of CI…**: The Adjudicating Authority extended the CIRP period for a further period of 90 days vide…

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