Allowed

In the matter of Modella Textile Industries Limited Ia No. 441-2023 in Cp (Ib) No.68-MB-C-IV-2021

NCLT9 Feb 2023

Case brief

AI extract

What is this about?

NALT Mumbai Bench allowed a Resolution Professional's application to extend the Corporate Insolvency Resolution Process (CIRP) of Modella Textile Industries Limited by 60 days beyond the statutory limit of 270 days, based on a 100% voting resolution by the CoC and powers under Rule 11.

What did the court decide?

Extension of CIRP period by 60 days from 30.01.2023 to 30.03.2023.

In the matter of Modella Textile Industries Limited Ia… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL MUMBAI BENCH-IV

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IA No. 441/2023

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Under Section 12(3) of Insolvency & Bankruptcy Code, 2016

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Mr. Bhrugesh Amin

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Resolution Professional/

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…Applicant

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In the matter of

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CP (IB) No.68/MB/C-IV/2021 Beacon Trusteeship Limited

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…Financial Creditor Vs.

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Modella Textile Industries Limited

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…Corporate Debtor

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Order Pronounced on: 09.02.2023

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Coram:

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Mr. Prabhat Kumar Hon’ble Member (Technical)

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Mr. Kishore Vemulapalli Hon’ble Member (Judicial)

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Appearances (via videoconferencing):

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For the Applicant/RP : Ms. Khushboo Shah Rajani, Advocate;

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ORDER

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The Application is filed on 01.02.2023 by Mr. Bhrugesh Amin, Applicant/ Resolution Professional, u/s 12(3) of the Code, seeking extension of 60 days of the CIRP period from 30.01.2023 to 30.03.2023.

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Ld. Counsel for the Applicant submits that since the last day of the CIRP comes to an end on 29.01.2023 i.e. 270 days and the discussion with the Prospective Resolution Applicants are ongoing, therefore the COC in the 8^th Committee of Creditors (CoC) meeting held on 20.01.2023 with 100% voting passed a resolution to seek an extension

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of further 60 days in the CIRP period to complete the resolution process and make the Corporate Debtor as a going concern.

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The Resolution passed in the 8^th CoC meeting as provided herein under:-

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“RESOLVED THAT pursuant to the applicable provisions of the Insolvency and Bankruptcy Code, 2016 read with subsequent amendments thereof and in accordance with rules and regulations made thereunder, in its meeting held on 20^th January 2023, the Committee of Creditors hereby approves the extension of the duration of corporate Insolvency Resolution Process of the Corporate Debtor by 60 days beyond 270 days which expires on 29^th January 2023 in view of on going consideration of resolution plan by Committee of Creditors.

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RESOLVED FURTHER THAT the Committee of Creditors hereby authorize the Resolution Professional and/ or Legal Counsel of the Resolution Professional for making application under section 12(3) of the IBC before Adjudicating Authority i.e. the Hon’ble National Company Law Tribunal, Mumbai Bench, for seeking extension of the period of the Corporate Insolvency Resolution Process of the Corporate Debtor beyond 270 days i.e. 60 days from 29^th January 2023 and the period would now expire on 30^th March 2023.

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RESOLVED FURTHER THAT the Resolution Professional of Modella Textile Industries Limited be and is hereby authorized to take such steps as may be necessary in relation to the above, if required and to settle all matters arising out of and incidental thereto and sign and execute all documents and writings that may be required and generally to do all acts, deeds, make payments and things that may be necessary, proper, expedient or incidental for the purpose of giving effect to the aforesaid resolution.”

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This Bench notes that the CIRP period expired on 29.01.2023, however, this Application was filed by the Applicant in the capacity of resolution professional on 01.02.2023. This Bench admit this application in view of powers confirm on it in the Rule 11 of NCLT Rules 2016 which enables the Adjudicating Authority to make such orders as may be necessary for meeting the ends of justice or to prevent abuse of the process of the Tribunal.

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The Bench has perused the minutes of meeting of 8^th CoC meeting wherein the approval for seeking extension of the duration of CIRP period was taken up. Which is seen that Resolution Professional has received one resolution plan for resolution of the Corporate Debtor and same is to be considered by the CoC. In view of this fact and the resolution passed with 100% voting in the 8^th CoC meeting, this Bench holds that the CIRP period can be extended another period of 60 days in the interest of Corporate Debtor and its Stakeholders. The said extension shall not result into CIRP period going beyond 330 days as stipulated in second proviso to sub-section 12(3) of Code.

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Accordingly, this Bench allows an extension of 60 days from the date of expire of last extended period.

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With the above directions, the IA No. 441/2023 filed u/s 12(3) by the applicant is hereby Allowed and Disposed of .

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Sd/-

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Prabhat Kumar Member (Technical)

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Sd/-

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Kishore Vemulapalli Member (Judicial)

In the matter of Modella Textile Industries Limited Ia No. 441-2023 in Cp (Ib) No.68-MB-C-IV-2021

Case brief

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In the matter of Modella Textile Industries Limited Ia No. 441-2023 in Cp (Ib) No.68-MB-C-IV-2021

Case brief

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