# In the matter of Ariisto Developers Private Limited I.A. No.1123-2021 in C. P. No. 2714-I&B-2018

> NCLT judgment dated 2023-04-17. Citation: TCN-2023-NCLT-03797. Prestige Estates Projects Limited, the applicant, filed an application under Section 60(5) of…

- **Court:** NCLT
- **Order date:** 17 Apr 2023
- **Citation:** TCN-2023-NCLT-03797
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ariisto-developers-private-limited-ia-no1123-2021-in-c-p-no-2714-ib-2018-59db8ff0

## Summary

### Background

Prestige Estates Projects Limited, the applicant, filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking extensions for payment of upfront cash and handing over possession of flats and commercial areas to homebuyers and the Committee of Creditors (CoC) under the Resolution Plan. The Resolution Plan for Ariisto Developers Private Limited, the Corporate Debtor, was approved on March 23, 2021. The applicant sought a 30-day extension for upfront cash payment and a 6-month extension for handing over possession, citing delays due to the COVID-19 pandemic. The Resolution Plan stipulated upfront cash payment within 60 days of the Plan Approval Date and timelines for handing over possession of properties. The applicant requested that the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Ariisto Developers Private Limited was initiated on November 20, 2018. Prestige Estates Projects Limited's Resolution Plan was approved on March 23, 2021, with the applicant receiving the Plan Approval Order on March 25, 2021. The Resolution Plan required the applicant to pay Rs. 370 crores as upfront cash to the Committee of Creditors (CoC) within 60 days of the Plan Approval Date, i.e., by May 24, 2021. The applicant made the payment on June 23, 2021, with a 30-day delay, attributing it to the second wave of the COVID-19 pandemic. The Resolution Plan also stipulated timelines for handing over possession of flats and commercial areas to homebuyers and the CoC, respectively. The applicant sought a 30-day extension

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## Issues and analysis

### Issue 1: Whether the applicant is entitled to a 30-day extension for making the upfront cash payment under …

**Ratio:** Regulation 40C of the IBBI CIRP Regulations provides for the extension of all timelines

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**Reasoning:** The court observed that the applicant had already made the upfront cash payment, albeit

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**Interpretation:** The regulation and case law are interpreted to mean that delays caused by the

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Prestige Estates…
- **Respondents:** Ariisto Developers…; Jayesh Sanghrajka…

## Timeline

- **2018-11-20 — CIRP Init…**: Corporate insolvency resolution process…
- **2018-12-24 — First COC M…**: First committee of creditors…

## 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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