# 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-01863. The document contains orders from the National Company Law Tribunal (NCLT), Mumbai Bench,…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01863
- **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-2018-7d2cfd03

## 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 by the RP for the liquidation of Tulsi Extrusions Ltd due to the failure of the CIRP. MA-2549/2019 involves Darshan Constructions seeking condonation of delay in filing its claim with the RP.

## Facts

Tulsi Extrusions Ltd. underwent CIRP initiated by Punjab National Bank under Section 7 of the IBC. The RP sought payment of CIRP expenses from Allahabad Bank, a member of the CoC, but faced delays. The RP filed MA-3635/2019 to compel payment. The CIRP failed to produce a resolution plan, leading the RP to file MA-3576/2019 for liquidation. The CoC voted in favor of liquidation. Darshan Constructions filed MA-2549/2019 seeking condonation of delay in filing its claim. Allahabad Bank paid the principal amount of Rs.5,24,166/- after TDS deduction, but delayed the payment of interest. The CIRP period was extended but ultimately failed. The corporate debtor was placed under CIRP vide order dated 20.12.2018.

## Issues and analysis

### Issue 1: Whether Allahabad Bank was justified in delaying the payment of CIRP expenses to the Resolution …

**Ratio:** A financial creditor is obligated to contribute its share of CIRP expenses in a timely

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**Reasoning:** The NCLT found that Allahabad Bank's delay in paying its share of CIRP expenses for over

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**Interpretation:** The legal principle emphasizes the responsibility of financial creditors to

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**Application:** The NCLT applied this principle to the facts by ordering Allahabad Bank to pay

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## Parties

- **Judges:** SHRI. RAJASEKHAR…; Ravikumar…; +1 more
- **Appellants:** Punjab National…
- **Respondents:** Tulsi Extrusions…

## Timeline

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

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