# In the matter of Pratibha Industries Limited IA 1517-MB-2022 in CP (IB) 3558-MB-2018

> NCLT judgment dated 2022-12-23. Citation: TCN-2022-NCLT-00015. The application IA 1517/MB/2022 in CP (IB) 3558/MB/2018 was filed by VDB Projects Private…

- **Court:** NCLT
- **Order date:** 23 Dec 2022
- **Citation:** TCN-2022-NCLT-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pratibha-industries-limited-ia-1517-mb-2022-in-cp-ib-3558-mb-2018-bfddd6f1

## Summary

### Background

The application IA 1517/MB/2022 in CP (IB) 3558/MB/2018 was filed by VDB Projects Private Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 32A of the IBBI (Liquidation Process) Regulations, 2016. The applicant sought permission to make a deposit after an extension of time to ensure funds are obtained from FGRPL.

## Facts

VDB Projects Private Limited filed an application (IA 1517/MB/2022) in connection with a corporate insolvency resolution process (CP (IB) 3558/MB/2018). The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 32A of the IBBI (Liquidation Process) Regulations, 2016. VDB Projects Private Limited sought permission to deposit funds after an extension of time, claiming they needed more time to obtain the funds from FGRPL. The NCLT had previously ordered VDB Projects Private Limited to deposit the consideration by 2022-06-03, but VDB Projects Private Limited failed to comply with this order. The regulations prescribe a 90-day period from the date of the Letter of Intent for the payment of sale consideration for going

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## Issues and analysis

### Issue 1: Whether the applicant, VDB Projects Private Limited, should be granted an extension of time to …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, aims to ensure the resolution of companies

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**Reasoning:** The court reasoned that the applicant had already been directed to deposit the

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**Interpretation:** Section 60(5) of the IBC provides the NCLT jurisdiction to deal with

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**Application:** The court applied the ratio and reasoning to the specific facts by noting that

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** VDB Projects…
- **Respondents:** Pratibha Industrie…; Anil Mehta,…

## Timeline

- **2022-12-23 — Order Del…**: The order was delivered on December 23, 2022, rejecting the application for extension of…
- **2022-06-03 — Previous…**: The Bench had directed the applicant to deposit the consideration vide order dated…

## 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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