# In the matter of Tulsi Extrusions Ltd. MA 2549-2019, MA 3635-2019, MA 3576/2019 in C.P. (IB)-3171(MB)-2018

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01857. The document contains orders from the National Company Law Tribunal (NCLT), Mumbai Bench,…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tulsi-extrusions-ltd-ma-2549-2019-ma-3635-2019-ma-35762019-in-cp-ib-3171mb-2018-0540295c

## Summary

### Background

The document contains orders from the National Company Law Tribunal (NCLT), Mumbai Bench, regarding applications related to the Corporate Insolvency Resolution Process (CIRP) of Tulsi Extrusions Ltd. MA-3635/2019 concerns the payment of CIRP expenses to the Resolution Professional (RP) by Allahabad Bank, a financial creditor. MA-3576/2019 is an application filed by the RP for the liquidation of Tulsi Extrusions Ltd. MA-2549/2019 involves Darshan Constructions seeking condonation of delay in filing its claim with the RP.

## Facts

Tulsi Extrusions Ltd. was undergoing CIRP. The RP filed MA-3635/2019 seeking payment of CIRP expenses from Allahabad Bank, a financial creditor. The RP had repeatedly requested payment, but Allahabad Bank did not respond. The Corporate Debtor was placed under CIRP vide order dated 20.12.2018, on an Application filed u/s- 7 of the IBC by Punjab National Bank. The RP also filed MA-3576/2019 seeking liquidation of Tulsi Extrusions Ltd. because no resolution plan was submitted despite multiple invitations for Expression of Interest. The CIRP period was extended but ultimately ended without a resolution plan. The CoC voted in favor of liquidation. Darshan Constructions filed MA-2549/2019 seeking condonation of delay in filing its claim with the RP. Allahabad Bank had

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## Issues and analysis

### Issue 1: Whether Allahabad Bank should be directed to pay …

**Ratio:** A financial creditor is obligated to pay its

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**Reasoning:** The NCLT found that Allahabad Bank's delay in paying CIRP expenses was unjustified and

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**Interpretation:** The interpretation is that financial creditors have a responsibility to

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**Application:** The NCLT applied this principle by directing Allahabad Bank to pay interest at

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## Parties

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

## Timeline

- **2018-12-20 — CIRP Init…**: Corporate Debtor was…
- **2019-01-29 — First CoC M…**: IRP was appoint…

## 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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