# In the matter of Laxmi Engineering Industries (bhopal) Private Limited

> NCLT judgment dated 2024-07-23. Citation: TCN-2024-NCLT-00970. The case involves applications (IA/268(MP)2024, IA/330(MP)2024, and IA/331(MP)2024) filed in…

- **Court:** NCLT
- **Order date:** 23 Jul 2024
- **Citation:** TCN-2024-NCLT-00970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/laxmi-engineering-industries-bhopal-private-limited-153f6218

## Summary

### Background

The case involves applications (IA/268(MP)2024, IA/330(MP)2024, and IA/331(MP)2024) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Laxmi Engineering Industries (Bhopal) Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The initial application, C.P.(IB)/8(MP)2022, was filed by Canara Bank. IA/268(MP)2024 sought an extension of the CIRP period, IA/330(MP)2024 concerned an urgent hearing related to IA/268(MP)2024, and IA/331(MP)2024 requested withdrawal of the CIRP following payments made by the Financial Creditor.

## Facts

Canara Bank initiated Corporate Insolvency Resolution Process (CIRP) against Laxmi Engineering Industries (Bhopal) Pvt Ltd through C.P.(IB)/8(MP)2022. The Resolution Professional (RP) filed IA/268(MP)2024 seeking a 45-day extension to complete the CIRP after the initial 270-day period expired. IA/330(MP)2024 was filed for urgent hearing of IA/268(MP)2024. Subsequently, IA/331(MP)2024 was filed by the RP under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP because the Financial Creditor made the payments. The CIRP was initiated vide order dated 28.07.2023. The court considered the submissions of the RP and the fact that payments had been made by the Financial Creditor. The relevance of the payment is that it allows for the withdrawal of the CIRP,

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) should be granted a 45-day extension to complete the …

**Ratio:** Section 60(5) of the IBC, 2016, read with Rule 11 of the NCLT Rules, 2016, allows the

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**Reasoning:** The court considered the submissions made by the learned counsel and the pleadings in the

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**Interpretation:** This provision allows the NCLT to provide flexibility in the CIRP timeline,

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**Application:** The court applied this provision by granting a 45-day extension to the RP,

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## Parties

- **Judges:** Chitra Ram…; KAUSHALENDRA…
- **Appellants:** Canara…
- **Respondents:** Laxmi Engineering…

## Timeline

- **2022-01-01 — C.P.(IB)/8(MP)/2022…**: Main petition filed initiating CIRP against…
- **2023-07-28 — CIRP Initiati…**: Order initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate…

## 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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