# In the matter of Texlene Forge Private Limited IA No.490 & 502-2020 In CP(IB) No. 344-Chd-Pb-2018

> NCLT judgment dated 2021-02-24. Citation: TCN-2021-NCLT-02931. The case involves applications (IA No. 490/2020 and 502/2020) filed in connection with CP(IB)…

- **Court:** NCLT
- **Order date:** 24 Feb 2021
- **Citation:** TCN-2021-NCLT-02931
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/texlene-forge-private-limited-ia-no490-502-2020-in-cpib-no-344-chd-pb-2018-73e5912f

## Summary

### Background

The case involves applications (IA No. 490/2020 and 502/2020) filed in connection with CP(IB) No. 344/Chd/Pb/2018, an admitted matter under the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated against Texlene Forge Private Limited. IA No. 502/2020 was filed by the Resolution Professional seeking an extension of the CIRP period by 90 days beyond the initial 180 days. The initial CIRP period was affected by a COVID-19 lockdown, leading to the exclusion of the lockdown period from the CIRP timeline. IA No. 490/2020 sought the withdrawal of the Corporate Insolvency Resolution Process (CIRP) based on a settlement with the operational creditor.

## Facts

Bhawani Industries Private Limited filed CP(IB) No. 344/Chd/Pb/2018 against Texlene Forge Private Limited, which was admitted on 2019-12-19. Due to the COVID-19 pandemic, a lockdown was imposed, and IA No. 327/2020 was filed and allowed, excluding the lockdown period from 2020-03-25 to 2020-06-30 from the CIRP period. The initial CIRP period of 180 days expired on 2020-09-22. Before the expiry, IA No. 502/2020 was filed on 2020-09-17 seeking a 90-day extension. In the 7th CoC meeting on 2020-09-08, a resolution for extension was passed with only 55.24% voting share. Indusind Bank and Fullerton India Credit Co. Ltd. abstained. In the 8th CoC meeting on 2020-09-28, a resolution for withdrawal of the CP was passed with 96.218% voting share due to a settlement. Fullerton

…

## Issues and analysis

### Issue 1: Whether the extension of the …

**Ratio:** The court considered the provisions of Section 12-A and 12(2) of the Insolvency and

…

**Reasoning:** The court noted that the initial CIRP period was affected by the COVID-19 lockdown, which

…

**Interpretation:** The court interpreted the relevant provisions of the IBC and the CIRP

…

**Application:** The court applied the provisions of the IBC and the CIRP Regulations to the

…

## Parties

- **Judges:** RaghuNa…; Ajay Kumar…
- **Appellants:** Bhawani Industries…
- **Respondents:** Texlene Forge…; Fullerton India…
- **Advocates:** Pulkit…; Harsh…

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB) No. 344/Chd/Pb/2018 filed…
- **2019-12-19 — CP(IB) Ad…**: CP(IB) No. 344/Chd/Pb/2018 admitted…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/texlene-forge-private-limited-ia-no490-502-2020-in-cpib-no-344-chd-pb-2018-73e5912f