# In the matter of Appu Hotels Limited IA(IBC)-703-CHE-2022 in IBA-1459-2019

> NCLT judgment dated 2022-07-13. Citation: TCN-2022-NCLT-01735. The case pertains to an application filed under Section 12(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Jul 2022
- **Citation:** TCN-2022-NCLT-01735
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/appu-hotels-limited-iaibc-703-che-2022-in-iba-1459-2019-e10c5e4d

## Summary

### Background

The case pertains to an application filed under Section 12(2) of the Insolvency and Bankruptcy Code, 2016, regarding the Corporate Insolvency Resolution Process (CIRP) of Appu Hotels Limited. The CIRP was initiated on 2020-05-05, and the applicant was appointed as the Interim Resolution Professional (IRP) on 2020-11-02. An application was filed seeking exclusion of 179 days from the CIRP, which was allowed on 2020-12-23. A resolution plan was approved on 2021-07-15, but it was challenged before the NCLAT, which set aside the plan on 2022-02-17 and directed the RP to consider a settlement proposal. The CoC directed the RP to seek an extension of the CIRP period.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Appu Hotels Limited was initiated on 2020-05-05. The applicant was appointed as the Interim Resolution Professional (IRP) on 2020-11-02. The 180-day CIRP period ended on 2020-11-04. An application was filed seeking exclusion of 179 days, which was allowed on 2020-12-23. A resolution plan was approved on 2021-07-15, but the NCLAT set it aside on 2022-02-17, directing the RP to consider a settlement proposal. The 11th CoC meeting was convened on 2022-05-03. The CoC directed the RP to seek a 90-day extension of the CIRP period from 2022-05-13. The Supreme Court reserved orders on 2022-03-16 regarding an appeal against the NCLAT order. The applicant filed IA(IBC)/363(CHE)/2022 seeking exclusion of 376 days, which was

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## Issues and analysis

### Issue 1: Whether the Tribunal should grant an extension of the CIRP period for Appu Hotels Limited by 90 …

**Ratio:** The Tribunal has the power to extend the CIRP period based on the provisions of the

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**Reasoning:** The Tribunal considered the averments made in the application, the resolution passed in

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, allows for extensions of the CIRP

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**Application:** Given the CoC's direction and the ongoing CIRP, the Tribunal found it

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## Parties

- **Judges:** (Retd.) S.…; SAMEER…
- **Appellants:** Radhakrishnan…
- **Respondents:** Appu Hotels…
- **Advocates:** T. Ravich…

## Timeline

- **2020-05-05 — CIRP Init…**: CIRP initiated for Appu…
- **2020-11-02 — Appointment…**: Applicant appointed as Interim…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(2) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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