# In the matter of Appu Hotels Limited IA-363-CHE-2021 in IBA-1459-2019

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02434. The case involves an application (IA/363/CHE/2022) filed in IBA/1459/2019 concerning Appu…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02434
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/appu-hotels-limited-ia-363-che-2021-in-iba-1459-2019-d2504ebf

## Summary

### Background

The case involves an application (IA/363/CHE/2022) filed in IBA/1459/2019 concerning Appu Hotels Limited under the Insolvency and Bankruptcy Code, 2016. The Resolution Professional (RP) sought exclusion of certain periods from the Corporate Insolvency Resolution Process (CIRP) timeline. The admission order under Section 7 of the IBC was passed on 2020-05-05. The RP was appointed on 2020-11-02. An earlier order excluding 376 days from the CIRP was challenged before NCLAT, which dismissed the appeal on 2021-05-05. The Tribunal approved the Resolution Plan on 2021-07-15. NCLAT later set aside the resolution plan and directed restoration of CIRP. The RP then filed civil appeals before the Supreme Court, which were reserved for judgment.

## Facts

The Resolution Professional (RP) for Appu Hotels Limited filed an application (IA/363/CHE/2022) seeking exclusion of 376 days from the Corporate Insolvency Resolution Process (CIRP) timeline. This exclusion was sought for two periods: 162 days from 2021-02-04 to 2021-07-15, spent on IA 150 of 2021 seeking approval of the Resolution Plan, and 214 days from 2021-07-19 to 2022-02-17, lost in adjudication appeals before NCLAT. The initial admission order under Section 7 of the Insolvency & Bankruptcy Code was passed on 2020-05-05. An earlier order excluding 376 days was challenged but the appeal was dismissed on 2021-05-05. The Resolution Plan was initially approved on 2021-07-15, but NCLAT set it aside on 2022-02-17, directing restoration of the CIRP. The RP filed

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## Issues and analysis

### Issue 1: Whether the period from 2021-02-04 to 2021-07-15, spent on seeking approval of the Resolution Plan, …

**Ratio:** The legal principle is based on the interpretation and application of the Insolvency and

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**Reasoning:** The Tribunal considered the applicant's arguments and the circumstances of the case,

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**Interpretation:** The interpretation involves understanding the provisions of the IBC regarding

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**Application:** The Tribunal applied the principle to the specific facts, considering the time

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## Parties

- **Judges:** Sucharit…; SAMEER…
- **Appellants:** Radhakrishnan…
- **Respondents:** Appu Hotels…

## Timeline

- **2020-05-05 — Admission…**: Admission order under Section 7 of the…
- **2020-11-02 — RP Appoin…**: The Applicant replaced the IRP/RP…

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