# In the matter of Navmi Steel Traders Private Limited

> NCLT judgment dated 2025-01-27. Citation: TCN-2025-NCLT-00576. The case involves an application for an extension of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 27 Jan 2025
- **Citation:** TCN-2025-NCLT-00576
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/navmi-steel-traders-private-limited-6361ac6d

## Summary

### Background

The case involves an application for an extension of the Corporate Insolvency Resolution Process (CIRP) period for Deep Star Alloys and Steels Private Limited. The CIRP commenced on 2024-03-12, and the initial period of 270 days expired on 2024-12-09. An earlier application for extension (IA 4760/2024) was allowed, extending the CIRP by 90 days. The present application seeks a further extension of 90 days from 2024-12-10. A resolution plan was received 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 Income Tax Department sought further instructions, delaying the approval of the resolution.

## Facts

Deep Star Alloys and Steels Private Limited is undergoing Corporate Insolvency Resolution Process (CIRP). The CIRP commenced on 2024-03-12. An initial 270-day period expired on 2024-12-09. An earlier extension of 90 days was granted via IA 4760/2024. The current application seeks a further 90-day extension from 2024-12-10. A resolution plan was received from a Prospective Resolution Applicant. The plan could not be voted on because the Income Tax Department, a CoC member holding 60% of the vote shares, was indecisive. The Income Tax Department sought further instructions from the Principal Commissioner of Income Tax. The maximum period of 330 days for CIRP was nearing completion, with only 12 days remaining after the last extension. The CoC meeting minutes from

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## Issues and analysis

### Issue 1: Whether a further extension of the CIRP period should be granted, considering the indecisiveness of …

**Ratio:** The CIRP process is designed to be time-bound, and extensions should only be granted in

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**Reasoning:** The court reasoned that while it acknowledged the need to regularize the CoC meetings,

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

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**Application:** In this case, the court initially granted a limited extension to regularize the

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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…
- **2024-12-09 — Initial CIRP Period…**: The initial period of 270…

## 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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