# 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-02123. 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-02123
- **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-a28b439b

## 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 before the Ahmedabad Bench of the National Company Law Tribunal (NCLT). The applicant, represented by Mr. Atul Sharma, sought an extension of the CIRP period for Swastik Ceracon Ltd. The Committee of Creditors (CoC) had passed a resolution in its 3rd meeting on 2019-06-04 with 99% voting in favor of extending 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). 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 another 90 days. The reason for seeking the extension was the possibility of exploring a viable resolution plan. The application for extension (IA 457 of 2019) was filed on 2019-07-03, before the expiry of the initial CIRP period. The applicant, represented by Mr. Atul Sharma, sought the extension before the NCLT Ahmedabad Bench. 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 Committee of Creditors (CoC) passed a resolution with a requisite majority of 99% to

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**Interpretation:** Section 12(2) allows for extension of the CIRP period if circumstances warrant

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**Application:** In this case, the CoC's resolution with 99% majority and the timely filing of

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## Parties

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

## Timeline

- **2019-06-04 — CoC Meet…**: The Committee of Creditors (CoC) held its 3rd meeting and passed a resolution with 99%…
- **2019-07-03 — Application…**: IA 457 of 2019 was filed seeking…

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