# In the matter of Cethar Constructions Limited

> NCLT judgment dated 2023-11-17. Citation: TCN-2023-NCLT-00723. The application IA(IBC)/1611(CHE)/2023 was filed in CP(IB)/56(CHE)/2022 under Section 12(2),…

- **Court:** NCLT
- **Order date:** 17 Nov 2023
- **Citation:** TCN-2023-NCLT-00723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cethar-constructions-limited-156f94ec

## Summary

### Background

The application IA(IBC)/1611(CHE)/2023 was filed in CP(IB)/56(CHE)/2022 under Section 12(2), 12(3) read with 60(5) of the Insolvency & Bankruptcy Code, 2016, seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period for M/s. Cethar Constructions Limited. The CIRP was initiated on 25.11.2022. The Corporate Debtor is a 99.96% subsidiary of M/s. Cethar Limited, which is under liquidation. The Resolution Professional (RP) faced difficulties in obtaining necessary documents and tracing assets of the Corporate Debtor. The initial 270-day CIRP period was expiring on 22.08.2023. The Committee of Creditors (CoC) unanimously resolved to authorize the RP to apply for a 60-day extension, from 23.08.2023 to 21.10.2023, due to the inability to take over

…

## Facts

The Corporate Debtor, M/s. Cethar Constructions Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on 25.11.2022. The Corporate Debtor is a 99.96% subsidiary of M/s. Cethar Limited, which is under liquidation. The Resolution Professional (RP) faced difficulties in obtaining necessary documents and tracing assets of the Corporate Debtor. The address of the Corporate Debtor as mentioned in the MCA portal was inaccurate. The RP visited the premises mentioned by the former MD and Chairman, but the assets had been sold by the liquidator of the holding company. The initial 270-day CIRP period was expiring on 22.08.2023. The Committee of Creditors (CoC) unanimously resolved on 17.08.2023 to authorize the RP to apply for a 60-day extension, from

…

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) period of the Corporate Debtor should be …

**Ratio:** Section 12 of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating Authority

…

**Reasoning:** The court considered the difficulties faced by the Resolution Professional (RP) in

…

**Interpretation:** Section 12 of the IBC provides a framework for the timely completion of the

…

**Application:** In this case, the court found that the RP had made reasonable efforts to obtain

…

## Parties

- **Judges:** SANJIV…; RAVICHANDRAN…
- **Appellants:** R. Thamod…
- **Respondents:** CETHAR CONSTRUCTIO…

## Timeline

- **2022-11-25 — CIRP Init…**: Corporate Debtor admitted into Corporate…
- **2023-05-24 — Extension o…**: Corporate Debtor availed extension of 90 days…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cethar-constructions-limited-156f94ec