# In the matter of Navmi Steel Traders Private Limited

> NCLT judgment dated 2025-01-27. Citation: TCN-2025-NCLT-00570. The case involves an application for an extension of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 27 Jan 2025
- **Citation:** TCN-2025-NCLT-00570
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/navmi-steel-traders-private-limited-017732dc

## Summary

### Background

The case involves an application for an extension of the Corporate Insolvency Resolution Process (CIRP) for Deep Star Alloys and Steels Private Limited. The CIRP commenced on 2024-03-12, and a previous extension had been granted. A resolution plan was received from a prospective resolution applicant but could not be voted on due to the indecisiveness of a Committee of Creditors (CoC) member holding 60% of the vote shares, specifically the Income Tax Department. The applicant hoped that an extension would allow the Income Tax Department to finalize their decision.

## Facts

The Corporate Insolvency Resolution Process (CIRP) for Deep Star Alloys and Steels Private Limited commenced on 2024-03-12. An application was filed seeking an extension of the CIRP for 90 days, from 2024-12-10 to 2025-03-10. A resolution plan was received, but voting was stalled due to the indecisiveness of the Income Tax Department, a member of the Committee of Creditors (CoC) holding 60% of the vote shares. The Income Tax Department sought further time to vote on the Resolution Plan. The initial CIRP period of 270 days expired on 2024-12-09. The court had previously directed the CoC to either vote on the Resolution Plan or pass a resolution for liquidation. The court granted an extension of the CIRP process from 2024-12-10 to 2025-01-26. No resolution plan was

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## Issues and analysis

### Issue 1: Whether the extension of the Corporate Insolvency Resolution Process (CIRP) should be granted given …

**Ratio:** CIRP is intended to be a time-bound process, and extensions should not be granted

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**Reasoning:** The court acknowledged the time-bound nature of the CIRP and the need for timely

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**Interpretation:** The interpretation of the Insolvency and Bankruptcy Code (IBC) emphasizes the

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**Application:** The court initially denied the extension request based on the principle of

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Raina Birla a/w…
- **Respondents:** Navmi Steel…
- **Advocates:** Raina B…; Henna…

## Timeline

- **2024-03-12 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) commenced for Deep Star Alloys and Steels…
- **2024-10-21 — Previous…**: Bench vide order dated 21.10.2024, as a last resort, allowed the IA 4760/2024 thereby…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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