NCLAT Grants Extension Of CIRP Timeline To Enable Voting On Revised Resolution Plan

M/s Shri Ram Switchgears Limited (“Corporate Debtor”) was admitted into Corporate Insolvency Resolution Process (“CIRP”) on 29.02.2024. The Adjudicating Authority granted an extension of the CIRP up to 24.05.2025. Before the expiry of the timeline on 24.05.2025, the Committee of Creditors (“CoC”) in its meeting held between 09.05.2025 and 14.05.2025, resolved with 96.94% vote share to seek a 30-day extension and exclusion of 148 days due to delays caused by the replacement of Interim Resolution Professional (“IRP”). The Prospective Resolution Applicant (“PRA”) presented a revised resolution plan during this meeting, which required more time to complete formalities and compliance. On 21.05.2025, the CoC decided to place the plan for voting and scheduled it to begin on 27.06.2025. By order dated 25.06.2025, the Adjudicating Authority rejected the application filed by the Resolution Professional (“RP”) for extension of 30 days' time and exclusion of 148 days from the CIRP timeline. The Petitioner filed the appeal praying for setting aside the impugned order.Observations The NCLAT noted that where the Adjudicating Authority itself had granted extension till 24.05.2025, there was no relevance of considering the period prior to 24.05.2025 in deciding the application for extension of 30 days. The Tribunal held that the Adjudicating Authority ought to have focused on whether steps had been taken by the CoC till 24.05.2025. The record showed that revised resolution plans had been submitted. Only a signed plan was required to be filed for the voting to take place. The Tribunal held that it was a fit case for extension of 30 days which was prayed for. It noted that in view of the rejection of the application, voting which was scheduled on 27.06.2025 could not take place. The Tribunal accordingly granted a fresh extension of 30 days from the date of the order.Case Title: UCO Bank v. C.A. Navin Kumar Khandelwal, RP of Shri Ram Switchgears Ltd. Case Number: Company Appeal (AT) (Insolvency) No. 1021 of 2025 For Appellant: Mr. Brijesh Kumar Tamber and Mr. Prateek Kushwaha, Advocates. For Respondent (RP): Mr. Sumesh Dhawan, Ms. Vatsala Kak, Mr. Shaurya Shyam and Ms. Varsha Mohanty, Advocates. For Respondent No. 3: Mr. Kunal Tandon, Sr. Advocate with Mr. Kunal Kanungo, Ms. Natasha Singh Bhatti, Ms. Tanushree Sogani and Mr. Atishay Jain, Advocates. Date of Order: 16.07.2025 Click Here To Read/Download The Order

NCLAT Grants Extension Of CIRP Timeline To Enable Voting On Revised Resolution Plan

Tazeen Ahmed

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