# In the matter of Shri Veerganapathi Steels Pvt. Ltd.IA-426-CHE-2022 in CP-229-IB-CB-2018

> NCLT judgment dated 2022-07-13. Citation: TCN-2022-NCLT-01736. The application IA/426/CHE/2022 was filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Jul 2022
- **Citation:** TCN-2022-NCLT-01736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shri-veerganapathi-steels-pvt-ltdia-426-che-2022-in-cp-229-ib-cb-2018-1553ed60

## Summary

### Background

The application IA/426/CHE/2022 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Regulation 44 and 47A of the IBBI (Liquidation Process) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The applicant, the Liquidator of Shri Veeraganapathi Steels Pvt Ltd, sought an order extending the time for completion of liquidation by another year from 12.04.2022. The Corporate Insolvency Resolution Process (CIRP) had commenced on 26.04.2018, and the applicant was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The applicant had filed applications for non-cooperation of the Promoter/Suspended board of Directors and identified fraudulent transactions by the erstwhile management. The

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## Facts

The Liquidator of Shri Veeraganapathi Steels Pvt Ltd filed an application seeking an extension of time to complete the liquidation process. The Corporate Insolvency Resolution Process (CIRP) had commenced on 26.04.2018. The Liquidator was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP). The Liquidator filed applications for non-cooperation of the Promoter/Suspended board of Directors. The Liquidator identified fraudulent transactions by the erstwhile management. The Liquidator filed an application against the erstwhile management and statutory auditor seeking directions for handing over possession of movable assets and accounting records. The Liquidator initiated steps to sell the assets through e-auction. The

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## Issues and analysis

### Issue 1: Whether the time for completion of the liquidation …

**Ratio:** Regulation 44 of the IBBI (Liquidation Process) Regulations, 2016, mandates the

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**Reasoning:** The court considered the submissions made by the Learned Counsel for the Liquidator, the

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**Interpretation:** Regulation 44(2) of the IBBI (Liquidation Process) Regulations, 2016, provides

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**Application:** The court applied the ratio of Regulation 44(2) to the specific facts of the

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Appellants:** Mr.Kavitha…
- **Respondents:** Shree Veera…

## Timeline

- **2018-04-26 — Commencement…**: The Tribunal ordered the commencement of the Corporate Insolvency Resolution Process…
- **2021-04-11 — Initial Deadline for…**: The initial deadline for completing the liquidation process, as per Regulation 44 of the…

## 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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