# In the matter of Swastik Ceracon Ltd. IA 457-2019 in CP (IB) No. 175-NCLT-AHM-2019

> NCLT judgment dated 2019-08-02. Citation: TCN-2019-NCLT-02130. The case involves an application (IA 457 of 2019) in a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 2 Aug 2019
- **Citation:** TCN-2019-NCLT-02130
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/swastik-ceracon-ltd-ia-457-2019-in-cp-ib-no-175-nclt-ahm-2019-6a253e87

## Summary

### Background

The case involves an application (IA 457 of 2019) in a Corporate Insolvency Resolution Process (CIRP) under CP (IB) No. 175/NCLT/AHM/2018. The applicant, represented by Mr. Atul Sharma, sought an extension of the CIRP period. The Committee of Creditors (CoC) had passed a resolution in its 3rd meeting on 2019-06-04 with 99% voting majority to extend the CIRP period by another 90 days. The statutory period of 180 days had expired on 2019-07-13, but the application for extension was filed on 2019-07-03, prior to the expiry date.

## Facts

Swastik Ceracon Ltd. is undergoing Corporate Insolvency Resolution Process (CIRP) under CP (IB) No. 175/NCLT/AHM/2018. The initial 180-day CIRP period expired on 2019-07-13. The Committee of Creditors (CoC) held its 3rd meeting on 2019-06-04 and passed a resolution with 99% majority to extend the CIRP period by 90 days, citing the possibility of finding a viable resolution plan. The Resolution Professional (RP), represented by Mr. Atul Sharma, filed an application (IA 457 of 2019) on 2019-07-03, prior to the expiry of the initial CIRP period, seeking this extension. Dena Bank & Ors. are the respondents in this case. The Adjudicating Authority considered the application and the submissions made by the applicant's counsel.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should grant an extension of the Corporate Insolvency Resolution …

**Ratio:** Section 12(2) of the Insolvency and Bankruptcy Code, 2016, empowers the Adjudicating

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**Reasoning:** The Adjudicating Authority considered the resolution passed by the Committee of Creditors

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**Interpretation:** Section 12(2) allows for an extension of the CIRP period if there are valid

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**Application:** In this case, the CoC's resolution, the possibility of a viable resolution

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Atul Sh…
- **Respondents:** Swastik Ceracon…; Dena…

## Timeline

- **2019-06-04 — CoC 3rd M…**: Committee of Creditors (CoC) passed a resolution with 99% voting majority to extend the…
- **2019-07-03 — Application…**: Application (IA 457 of 2019) filed…

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