# In the matter of Tirupati Inks Limited IA-2558-2021 in (IB)-314(PB)-2017

> NCLT judgment dated 2021-07-27. Citation: TCN-2021-NCLT-01591. The case involves IA/2558/2021 filed under Regulation 44(2) of The Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 27 Jul 2021
- **Citation:** TCN-2021-NCLT-01591
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tirupati-inks-limited-ia-2558-2021-in-ib-314pb-2017-30902222

## Summary

### Background

The case involves IA/2558/2021 filed under Regulation 44(2) of The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. The liquidator sought exclusion of time from 19.04.2021 to 07.06.2021 due to the COVID-19 lockdown, for calculating the six-month extension period previously granted by the Tribunal, effective from 21.11.2020. An order for liquidation of the Corporate Debtor was passed on 12.09.2018, and Mr. Lekhraj Bajaj was appointed as Liquidator. The initial two-year liquidation period ended on 12.09.2020. After excluding 70 days of lockdown (23.03.2020 to 31.05.2020), the extended timeline expired on 21.11.2020. The Tribunal had previously extended the liquidation process for six months from 21.11.2020, which was to end on 20.05.2021.

## Facts

ICICI Bank Limited is the Financial Creditor. Tirupati Inks Limited is the Corporate Debtor. Lekhraj Bajaj is the Liquidator for Tirupati Inks Limited and the Applicant in this case. An order for liquidation of the Corporate Debtor was passed on 2018-09-12. The initial two-year liquidation period ended on 2020-09-12. The period of lockdown from 2020-03-23 to 2020-05-31 was excluded. The extended timeline for completion of the Liquidation Process of Corporate Debtor had expired on 2020-11-21. The Tribunal extended the Liquidation process period for 6 months with effect from 2020-11-21 which came to an end on 2021-05-20. The Liquidator filed IA/2558/2021 seeking exclusion of time from 2021-04-19 to 2021-06-07 due to the COVID-19 lockdown. All assets of the Corporate

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## Issues and analysis

### Issue 1: Whether the Liquidator's application for exclusion of time due to the COVID-19 lockdown should be …

**Ratio:** Regulation 44(2) of The Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The Tribunal considered the impact of the COVID-19 lockdown on the liquidation process

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**Interpretation:** The interpretation of Regulation 44(2) and Regulation 47A allows the Tribunal

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**Application:** The Tribunal applied this interpretation to the specific facts of the case,

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## Parties

- **Judges:** SH. BHASKARA…; Sh. Hemant Kumar…
- **Appellants:** Lekhraj…
- **Respondents:** Tirupati Inks…; ICICI Bank…

## Timeline

- **2018-09-12 — Liquidation…**: An order for liquidation of the…
- **2020-09-12 — Initial Liquidation…**: Two years from the commencement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54(2) — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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