# 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-00040. 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-00040
- **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-c8b63fc6

## 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, seeking an extension of time to deposit the unpaid consideration. The applicant requested permission to make the deposit after an extension of time to ensure funds were obtained from FGRPL.

## Facts

VDB Projects Private Limited filed an application (IA 1517/MB/2022) in CP (IB) 3558/MB/2018 seeking an extension of time to deposit unpaid consideration related to liquidation. 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. The applicant stated that the extension was needed to ensure funds were obtained from FGRPL. The NCLT had previously directed the applicant to deposit the consideration vide order dated 2022-06-03, but the applicant failed to comply. The regulations prescribe a 90-day limit from the date of receipt of the Letter of Intent for the payment of sale consideration.

## 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 timely resolution or liquidation

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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 with jurisdiction to deal with

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

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## Parties

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

## Timeline

- **2022-06-03 — Previous…**: The Bench directed the applicant to…
- **2022-12-23 — Order Del…**: The NCLT rejected the application IA…

## 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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