# In the matter of Manan Apparels Limited

> NCLT judgment dated 2025-01-31. Citation: TCN-2025-NCLT-00545. The case involves an application for the extension of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 31 Jan 2025
- **Citation:** TCN-2025-NCLT-00545
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manan-apparels-limited-655fba8d

## Summary

### Background

The case involves an application for the extension of the Corporate Insolvency Resolution Process (CIRP) period for Manan Apparels Limited. The Committee of Creditors (CoC) had previously granted a 90-day extension beyond the initial 180-day period, which expired on 26.10.2024. However, the CoC subsequently decided to liquidate the Corporate Debtor in their 8th meeting held on 03.12.2024, resolving that the proposition for liquidation be approved. An application seeking liquidation was filed, but it was pending numbering by the Registry.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated for Manan Apparels Limited. An extension of 90 days was previously granted, expiring on 26.10.2024. The Committee of Creditors (CoC) decided in their 8th meeting on 03.12.2024 to liquidate the Corporate Debtor, resolving that the proposition for liquidation be approved. Mr. Kamal Kumar Jain, the existing Resolution Professional (RP), was nominated as Liquidator. An application seeking liquidation was filed but was pending numbering by the Registry. The CoC did not discuss or decide on the extension of the CIRP. The court considered the absence of a resolution plan and the CoC's decision to liquidate as key factors in its decision.

## Issues and analysis

### Issue 1: Whether the Interlocutory Application bearing IA No. 589 of 2025 seeking extension of Corporate …

**Ratio:** The court has the discretion to extend the CIRP period based on the circumstances and the

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**Reasoning:** The court considered the CoC's decision to liquidate the Corporate Debtor, which rendered

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**Interpretation:** The interpretation of the IBC allows for the CIRP period to be extended, but

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**Application:** The court partly allowed the application, extending the CIRP period until

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Respondents:** Manan Apparels…
- **Advocates:** Sameer…; Agam H.…

## Timeline

- **2024-10-26 — Expiry of Extension…**: The 90-day extension period granted to the Corporate Insolvency Resolution Process (CIRP)…
- **2024-12-03 — CoC Meet…**: The Committee of Creditors (CoC) held its 8th meeting and resolved to liquidate the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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