# In the matter of M. N. Horological Industries Private Limited IA-1159-CHE-2021 in CP-1441-2018

> NCLT judgment dated 2022-04-28. Citation: TCN-2022-NCLT-02974. The case involves IA/1159/CHE/2021 filed in CP/1441/2018 under Section 44(2) of the Insolvency…

- **Court:** NCLT
- **Order date:** 28 Apr 2022
- **Citation:** TCN-2022-NCLT-02974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-n-horological-industries-private-limited-ia-1159-che-2021-in-cp-1441-2018-6e9af69d

## Summary

### Background

The case involves IA/1159/CHE/2021 filed in CP/1441/2018 under Section 44(2) of the Insolvency and Bankruptcy Code, 2016, concerning M. N. Horological Industries Limited. The applicant, L. V. Shyam Sundar, is the liquidator seeking an extension of time for the liquidation process. The applicant was appointed as liquidator on 2020-05-05. The office of the applicant was closed due to the Covid-19 lockdown. A stakeholders committee was formed, and an asset memorandum was prepared on 2020-09-27. Plant and machinery were sold on 2021-04-07 through public auction. The exclusion under section 47A was granted, and the last date for liquidation was 2021-10-04. The applicant had previously filed IA 972 of 2021 seeking approval for a private sale of certain assets, but it was

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## Facts

L. V. Shyam Sundar, the liquidator of M. N. Horological Industries Limited, filed IA/1159/CHE/2021 seeking a six-month extension for the liquidation process under Section 44(2) of the Insolvency and Bankruptcy Code, 2016. The applicant was appointed as liquidator on 2020-05-05. The Covid-19 lockdown caused the applicant's office to close, delaying the public announcement until 2020-07-17. A stakeholders committee was formed, and an asset memorandum was prepared on 2020-09-27. Plant and machinery were sold via public auction on 2021-04-07. The exclusion under section 47A was granted, setting the initial liquidation deadline as 2021-10-04. A previous application, IA 972 of 2021, for private asset sale approval was withdrawn and disposed of on 2021-12-09. Pending

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## Issues and analysis

### Issue 1: Whether the extension of the liquidation period for six months should be granted to the applicant, …

**Ratio:** The court has the discretion to grant an extension of the liquidation period under

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**Reasoning:** The court considered the arguments presented by the Ld. PCS and acknowledged the

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**Interpretation:** Section 44(2) of the Insolvency and Bankruptcy Code, 2016, allows for

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**Application:** In this case, the pending litigation before the Additional District Judge,

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** L. V. Shyam…
- **Respondents:** M. N. Horological…

## Timeline

- **2020-05-05 — Appointment of…**: L. V. Shyam Sundar was appointed as the liquidator of M. N. Horological Industries…
- **2020-07-17 — Public Annou…**: Public announcement was issued after the…

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