# 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-00019. 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-00019
- **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-d5d364a1

## 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 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 CP (IB) 3558/MB/2018 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 an extension of time to deposit unpaid consideration, claiming they needed more time to obtain funds from FGRPL. The NCLT had previously directed the applicant to deposit the consideration via an order dated 2022-06-03, but the applicant failed to comply. The regulations prescribe a 90-day outer limit from the date of the Letter of Intent for payment of sale consideration for going concern sale and liquidation.

## 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 of financial

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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 principle of timely resolution and the regulatory time

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## Parties

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

## Timeline

- **2022-06-03 — Previous…**: The Bench directed the applicant…
- **2022-12-23 — Order Del…**: The application for extension of time to…

## 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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