# In the matter of Tulsi Extrusion Ltd. MA 3635/2019 In C.P (IB)-3171(MB)-2018

> NCLT judgment dated 2020-03-02. Citation: TCN-2020-NCLT-01718. The case involves an application (MA-3635/2019) filed by the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 2 Mar 2020
- **Citation:** TCN-2020-NCLT-01718
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tulsi-extrusion-ltd-ma-36352019-in-cp-ib-3171mb-2018-963a7f4d

## Summary

### Background

The case involves an application (MA-3635/2019) filed by the Resolution Professional (RP) of Tulsi Extrusions Ltd. seeking payment by Allahabad Bank, a financial creditor and member of the Committee of Creditors (CoC), to cover Corporate Insolvency Resolution Process (CIRP) expenses. The principal sum of Rs. 5,43,994/- minus TDS was paid by Demand Draft dated 21.01.2020. The court considered the matter and directed Allahabad Bank to pay interest at 12% p.a. on that amount within one week from 20.02.2020. Subsequently, Allahabad Bank's counsel handed over a Demand Draft for Rs. 48,959 in favor of the RP. The court had ordered the liquidation of the Corporate Debtor on 20.02.2020. Mr. Amit C. Poddar, the erstwhile RP, filed his consent to act as Liquidator, and he was

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## Facts

Tulsi Extrusions Ltd. is undergoing Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) filed MA-3635/2019 seeking payment of CIRP expenses by Allahabad Bank, a financial creditor. The expenses amounted to Rs. 5,43,994/-. Allahabad Bank paid the principal amount via Demand Draft dated 21.01.2020. The court directed Allahabad Bank to pay interest at 12% p.a. on the principal amount. Allahabad Bank's counsel handed over a Demand Draft for Rs. 48,959. The court had ordered the liquidation of the Corporate Debtor on 20.02.2020. Mr. Amit C. Poddar, the erstwhile RP, consented to act as Liquidator and was appointed as such. The relevance of these facts lies in the progression of the CIRP, the settlement of financial obligations, and the

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## Issues and analysis

### Issue 1: Whether the application MA-3635/2019 seeking payment of CIRP expenses by Allahabad Bank should be …

**Ratio:** The principle of settling CIRP expenses to ensure the smooth continuation, and eventual

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**Reasoning:** The court considered the payment of the principal amount by Allahabad Bank and the

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**Interpretation:** The application was deemed infructuous, suggesting that the primary relief

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**Application:** Since the principal amount was paid and further payments were made, the court

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## Parties

- **Judges:** SHRI. RAJASEKHAR…; RavikumarDu…
- **Appellants:** Punjab National…
- **Respondents:** Tulsi Extrusions…

## Timeline

- **2020-01-21 — Demand Draft…**: The principal sum of Rs.5,43,994/-…
- **2020-02-20 — Liquidation…**: Court ordered the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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