# In the matter of Prathyusha Resources & Infra Pvt. Ltd. IA(IBC)-278-2023 in CP (IB)-27-7-AMR-2020

> NCLT judgment dated 2023-07-17. Citation: TCN-2023-NCLT-02484. The case pertains to an application filed under Section 44(2) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Jul 2023
- **Citation:** TCN-2023-NCLT-02484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prathyusha-resources-infra-pvt-ltd-iaibc-278-2023-in-cp-ib-27-7-amr-2020-21f25666

## Summary

### Background

The case pertains to an application filed under Section 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, seeking an extension of the liquidation process by 180 days, from 04.07.2023 to 31.12.2023. The Corporate Debtor (CD) was admitted into Corporate Insolvency Resolution Process (CIRP) on 03.11.2021, following an application under Section 7 of IBC by State Bank of India. The applicant was appointed as the Insolvency Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Despite efforts to find resolution applicants, the Committee of Creditors (CoC) resolved for liquidation on 03.03.2022, and the liquidation application was allowed on 04.07.2022, appointing the applicant as the Liquidator.

## Facts

State Bank of India (SBI) initiated Corporate Insolvency Resolution Process (CIRP) against Prathyusha Resources & Infra Private Limited by filing an application under Section 7 of the Insolvency and Bankruptcy Code (IBC). The application was admitted on 03.11.2021, and the Corporate Debtor (CD) was placed under CIRP. An Insolvency Resolution Professional (IRP) was appointed, who was later confirmed as the Resolution Professional (RP) by the Committee of Creditors (CoC) on 03.12.2021. The RP invited Expression of Interest (EoI) from Prospective Resolution Applicants (PRAs), but received no response. Consequently, the CoC resolved to liquidate the CD on 03.03.2022. The liquidation application was allowed on 04.07.2022, and the applicant was appointed as the

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## Issues and analysis

### Issue 1: Whether the extension of the liquidation period …

**Ratio:** Section 44(2) of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The Tribunal considered the facts stated in the application and found valid reasons for

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**Interpretation:** Section 44(2) provides the legal basis for extending the liquidation period,

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**Application:** The Tribunal applied the provisions of Section 44(2) to the facts of the case,

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** State Bank of…
- **Respondents:** Prathyusha…; Prathyusha…
- **Advocates:** M.Sri…

## Timeline

- **2021-11-03 — Admission in…**: Corporate Debtor admitted into Corporate Insolvency Resolution Process (CIRP) following…
- **2021-12-03 — RP Appoin…**: Applicant appointed as Insolvency Resolution Professional (IRP) and later confirmed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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