# In the matter of JMD Oils Private Limited

> NCLT judgment dated 2024-09-04. Citation: TCN-2024-NCLT-00670. The case involves an application (New IA/4373/2024) filed by the Liquidator seeking an…

- **Court:** NCLT
- **Order date:** 4 Sept 2024
- **Citation:** TCN-2024-NCLT-00670
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jmd-oils-private-limited-783cf09e

## Summary

### Background

The case involves an application (New IA/4373/2024) filed by the Liquidator seeking an extension for the continuation of the liquidation process under Regulation 44(2) of the IBBI (Liquidation Process) Regulations, 2016. The Adjudicating Authority had previously granted a six-month extension effective from February 2, 2024, with a clear indication that no further extension would be granted. Despite this, the Stakeholders Consultation Committee passed a resolution ignoring the Adjudicating Authority's observation.

## Facts

Indian Overseas Bank initiated a case against M/s. JMD Oils Pvt. Ltd. under Section 7 of the IBC in liquidation. The Liquidator filed an application (New IA/4373/2024) seeking an extension for the liquidation process, citing Regulation 44(2) of the IBBI (Liquidation Process) Regulations, 2016. The Adjudicating Authority had previously granted a six-month extension effective from February 2, 2024, with a clear statement that no further extensions would be permitted. The Stakeholders Consultation Committee passed a resolution ignoring this observation. The matter was pending before a higher authority for adjudication.

## Issues and analysis

### Issue 1: Whether the Liquidator's application for an extension of the liquidation process should be granted, …

**Ratio:** The principle is that prior judicial orders should be respected and adhered to unless

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**Reasoning:** The court acknowledged the prior order explicitly stating that no further extensions

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**Interpretation:** The interpretation of Regulation 44(2) is that while it provides a mechanism

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**Application:** Despite the prior order, the court granted a limited three-month extension due

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; Sanjeev R…
- **Appellants:** Indian Overseas…
- **Respondents:** M/s. JMD Oils…
- **Advocates:** Shalu K…; Gautam Si…; +1 more

## Timeline

- **2024-02-02 — Previous Extension…**: The Adjudicating Authority granted a six-month extension for the liquidation process,…
- **2024-03-07 — Previous Ord…**: Date of the previous order where the Adjudicating Authority stated that no further…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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