# In the matter of Kailash T Shah

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00250. This case involves an Interlocutory Application (IA/483(AHM)2025) filed by the Resolution…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kailash-t-shah-1d441988

## Summary

### Background

This case involves an Interlocutory Application (IA/483(AHM)2025) filed by the Resolution Professional (RP) under Section 60(5)(c) of the Insolvency and Bankruptcy Code (IBC) read with Regulation 19 of the IBBI Regulations and Rule 11 of the NCLT Rules. The RP sought exclusion of 108 days from the insolvency resolution process timeline due to a stay granted by the NCLAT from 2024-11-29 to 2025-03-17. The RP also requested a 60-day extension for submitting a repayment plan, effective from 2025-02-19. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Personal Guarantor, Mr. Dinesh Lathidadia, through CP (IB) No.231/NCLT/AHM/2024, which was admitted on 2024-10-21.

## Facts

Mr. Kailash T Shah, the Resolution Professional (RP) for Mr. Dinesh Lathidadia, a personal guarantor to M/s. Palav Synthetics Pvt. Ltd., filed an Interlocutory Application (IA/483(AHM)2025) seeking certain reliefs. CP (IB) No.231/NCLT/AHM/2024 was admitted on 2024-10-21, initiating the Insolvency Resolution Process (IRP) against the personal guarantor. The RP requested the exclusion of 108 days from the IRP timeline due to a stay order issued by the National Company Law Appellate Tribunal (NCLAT) from 2024-11-29 to 2025-03-17 in Company Appeal CA (AT) (INS) No. 2147 of 2024. The NCLAT's interim order directed that while the insolvency process could continue, no repayment plan should be finalized until further orders. The RP also sought a 60-day extension for submitting

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## Issues and analysis

### Issue 1: Whether the period of stay granted by the NCLAT …

**Ratio:** Rule 11 of the NCLT Rules, 2016, empowers the Tribunal to issue orders ensuring justice,

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**Reasoning:** The NCLT considered the stay order granted by the NCLAT, which prevented the finalization

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**Interpretation:** The NCLT interpreted Rule 11 and Regulation 19 as providing the Tribunal with

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**Application:** The NCLT applied the ratio by excluding 108 days from the IIRP timeline,

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## Parties

- **Judges:** SHAMMI…; SANJEEV S…
- **Appellants:** Kailash T…
- **Respondents:** Palav Synthetics…; Palav Syntheties…

## Timeline

- **2024-10-21 — Admission of CP (IB)…**: CP (IB) No.231/NCLT/AHM/2024 was admitted, initiating the Insolvency Resolution Process…
- **2024-11-29 — NCLAT Stay…**: The National Company Law Appellate Tribunal (NCLAT) granted an interim stay order in…

## 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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