# 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-01870. The document contains orders regarding three applications (MA-3635/2019, MA-3576/2019, and…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01870
- **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-2018-9917114c

## Summary

### Background

The document contains orders regarding three applications (MA-3635/2019, MA-3576/2019, and MA-2549/2019) filed in relation to the Corporate Insolvency Resolution Process (CIRP) of Tulsi Extrusions Ltd. MA-3635/2019 concerns the payment of CIRP expenses by Allahabad Bank, a financial creditor. MA-3576/2019 is an application by the Resolution Professional for the liquidation of Tulsi Extrusions Ltd. MA-2549/2019 involves a request for condonation of delay in filing a claim.

## Facts

Tulsi Extrusions Ltd. underwent CIRP initiated by Punjab National Bank under Section 7 of the IBC. The Resolution Professional (RP) filed MA-3635/2019 seeking payment of CIRP expenses from Allahabad Bank, a financial creditor and member of the Committee of Creditors (CoC). Allahabad Bank delayed payment for over nine months. The RP also filed MA-3576/2019 for liquidation as no resolution plan was received despite multiple invitations for Expression of Interest. The CIRP period ended on 24.09.2019 without a resolution plan. The CoC voted for liquidation with 99.98% majority on 17.09.2019. Darshan Constructions filed MA-2549/2019 seeking condonation of a two-day delay in filing its claim. The Corporate Debtor was placed under CIRP vide order dated 20.12.2018.

## Issues and analysis

### Issue 1: Whether Allahabad Bank was justified in …

**Ratio:** Financial creditors are obligated

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**Reasoning:** The court found no justification for Allahabad Bank's delay in paying its share of CIRP

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**Interpretation:** This highlights the responsibility of financial creditors to support the CIRP

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**Application:** The court applied the principle by directing Allahabad Bank to pay the

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## Parties

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

## Timeline

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

## 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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