# In the matter of Platinoclassic Motors (India) Private Limited IA(IBC)-146-KOB-2022 in IBA-25-KOB-2020

> NCLT judgment dated 2023-06-23. Citation: TCN-2023-NCLT-02816. The Federal Bank Limited, a secured creditor of Platino Classic Motors (India) Pvt Ltd…

- **Court:** NCLT
- **Order date:** 23 Jun 2023
- **Citation:** TCN-2023-NCLT-02816
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/platinoclassic-motors-india-private-limited-iaibc-146-kob-2022-in-iba-25-kob-202-c64800d9

## Summary

### Background

The Federal Bank Limited, a secured creditor of Platino Classic Motors (India) Pvt Ltd (corporate debtor), filed an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking an extension of 180 days from 29.03.2023 to sell a secured asset under the SARFAESI Act and remit any excess amount over its admitted claim. The corporate debtor was ordered into liquidation on 30.09.2022. The bank opted to realize its security interest, informed the liquidator, and submitted Form-D as per IBBI regulations. The liquidator permitted the bank to realize its security interest. The bank paid the amount payable under Section 53(1)(a) & 53(1)(b)(i) to the liquidator. The liquidator informed the bank he could not find a buyer and permitted the bank to

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## Facts

The Federal Bank Limited is a secured creditor of Platino Classic Motors (India) Pvt Ltd, which is undergoing liquidation. The bank sought to realize its security interest under Section 52(1)(b) of the Insolvency and Bankruptcy Code (IBC) and informed the liquidator. The bank submitted Form-D as required by Regulation 21A(1) of the IBBI (Liquidation Process) Regulations, 2016, on 28.10.2022. The liquidator verified the security interest and permitted the bank to proceed. The bank paid the amount payable under Section 53(1)(a) & 53(1)(b)(i) to the liquidator. The liquidator informed the bank on 23.12.2022 that he could not find a buyer and permitted the bank to proceed under the SARFAESI Act. The possession of the secured asset was surrendered to the bank on

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## Issues and analysis

### Issue 1: Whether the period of 180 days prescribed under Regulation 21A (2) (b) of IBBI (Liquidation …

**Ratio:** The time limit of 180 days prescribed in Regulation 21A (2) (b) is mandatory, not

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**Reasoning:** The court reasoned that the word 'shall' is used in Regulation 21A (2), and Regulation

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**Interpretation:** Regulation 21A(2)(b) of the IBBI (Liquidation Process) Regulations, 2016,

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**Application:** Since the bank could not realize the amount within the 180-day period, and the

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## Parties

- **Judges:** Shri. P. Mo…; SHRI. SATYA…
- **Appellants:** The Federal Bank…
- **Respondents:** M/s Platino…; Ruben George…

## Timeline

- **2022-09-30 — Liquidation…**: The corporate debtor was ordered into…
- **2022-10-28 — Form-D Subm…**: The applicant submitted Form-D as provided under Regulation 21A (1) of the IBBI…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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