# In the matter of Lanco Kondapalli Power Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00052. The case involves an application filed by MCM Pacific Private Limited (the Applicant) seeking…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lanco-kondapalli-power-limited-998738f9

## Summary

### Background

The case involves an application filed by MCM Pacific Private Limited (the Applicant) seeking directions from the National Company Law Tribunal (NCLT) to prevent the Liquidator/Resolution Professional from cancelling their bid for assets of Lanco Kondapalli Power Limited (the Corporate Debtor). The Applicant had offered a bid of Rs. 136.11 Crores, which was accepted, and they were declared the successful bidder. However, issues arose regarding GST, interest, and reservation costs. The Applicant sought extensions of time to make the balance payment, which were initially denied, leading to the cancellation of the sale and forfeiture of Rs. 15.44 Crores. The Applicant then approached the liquidator for reconsideration and filed multiple IAs seeking extensions and waivers

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## Facts

MCM Pacific Private Limited (Applicant) participated in the liquidation process of Lanco Kondapalli Power Limited (Corporate Debtor) and emerged as the successful bidder for asset parcel No. 4 in category B, offering Rs. 136.11 Crores. The CIRP of the Corporate Debtor was initiated on 2019-04-23, and liquidation was ordered on 2021-04-16. A letter of intent was issued on 2022-06-21, and the Applicant paid Rs. 15.44 Crores. The balance payment was not made within the stipulated 90 days, leading the Respondent (Liquidator) to cancel the sale and forfeit the deposited amount on 2022-09-20. The Applicant filed IA No. 972/2022 seeking an extension of time, which was dismissed on 2022-10-12, and the appeal was dismissed by NCLAT on 2022-11-28. The Applicant approached the

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## Issues and analysis

### Issue 1: Whether the Applicant is entitled to an extension of time to pay the balance amount for the assets …

**Ratio:** The NCLT has the discretion to grant extensions of time in appropriate cases, considering

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**Reasoning:** The court considered the history of the case, including the initial defaults in payment,

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**Interpretation:** The IBC aims to balance the interests of all stakeholders and ensure timely

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**Application:** In this case, the court allowed the Applicant's prayers, subject to the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** MCM Pacific…
- **Respondents:** Lanco Kondapalli…; Pankaj Dhanuka,…

## Timeline

- **2019-04-23 — CIRP Init…**: CIRP of Corporate Debtor was…
- **2021-04-16 — Liquidation…**: An order for liquidation was…

## 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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