# Approval of Resolution Plan - Autopal Industries Limited

> NCLT judgment dated 2024-09-23. Citation: TCN-2024-NCLT-00571. The case involves an application (IA No. 384/JPR/2024) filed under Section 60(5) of the…

- **Court:** NCLT
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-NCLT-00571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-autopal-industries-limited-af813f74

## Summary

### Background

The case involves an application (IA No. 384/JPR/2024) filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IBC') read with rule 11 of the National Company Law Tribunal Rules, 2016 ('NCLT Rules') by the Resolution Professional of M/s Autopal Industries Limited ('Corporate Debtor'). The application seeks the exclusion of 431 days from the Corporate Insolvency Resolution Process ('CIRP') period, citing delays due to indecisiveness of the Committee of Creditors (CoC) and adjudication of another application (I.A. No. 352 of 2023). The CIRP was initiated following an application by M/s Tack Innovations ('Operational Creditor') under Section 9 of the Code. The Resolution Professional was appointed on 16.08.2022.

## Facts

M/s Tack Innovations initiated Corporate Insolvency Resolution Process (CIRP) against M/s Autopal Industries Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC). Mr. Ajay Gupta was appointed as the Interim Resolution Professional (IRP) on 16.08.2022. The Resolution Professional filed IA No. 384/JPR/2024 seeking exclusion of 431 days from the CIRP period, citing delays due to indecisiveness of the CoC member holding the majority voting rights and the adjudication of I.A. No. 352 of 2023. The majority stakeholder in the CoC expressed their assent via email dated 01.07.2024, to make efforts for the resolution of the Corporate Debtor by providing opportunities to the existing PRAs. The Applicant scheduled 11th CoC meeting on

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the exclusion of 431 days from the Corporate …

**Ratio:** The ratio is based on the principle that the Adjudicating Authority has the power to

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**Reasoning:** The court reasoned that the delay in the CIRP was due to the indecisiveness of the CoC

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**Interpretation:** The interpretation involves the Adjudicating Authority's discretion to extend

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Ajay G…
- **Respondents:** M/S AUTOPAL…; Milan Sing…
- **Advocates:** Milan Sing…; Nikhil…; +1 more

## Timeline

- **2022-08-16 — Appointment…**: Mr. Ajay Gupta was appointed as Interim Resolution Professional (IRP) for M/s Autopal…
- **2023-04-24 — Start of Exclusion…**: Start date of the 431 days exclusion…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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