Judicial Delays Justified: NCLAT Allows UCO Bank’s CIRP Extension Plea [Read Order]
The appellate tribunal has set aside an NCLT order and granted a 30-day extension along with 148-day exclusion in the CIRP of a company, citing procedural delays due to IRP replacement
![Judicial Delays Justified: NCLAT Allows UCO Bank’s CIRP Extension Plea [Read Order]](https://images.taxscan.in/h-upload/2025/07/30/2070729-nclat-uco-bank-insolvency-taxscan.webp "Judicial Delays Justified: NCLAT Allows UCO Bank’s CIRP Extension Plea [Read Order]")
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, has granted a 30-day extension and allowed the exclusion of 148 days from the Corporate Insolvency Resolution Process (CIRP) timeline in the matter of Shri Ram Switchgears Ltd., setting aside an earlier rejection by the adjudicating authority. The appeal, filed by UCO Bank, challenged the National Company...
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, has granted a 30-day extension and allowed the exclusion of 148 days from the Corporate Insolvency Resolution Process (CIRP) timeline in the matter of Shri Ram Switchgears Ltd., setting aside an earlier rejection by the adjudicating authority.
The appeal, filed by UCO Bank, challenged the National Company Law Tribunal (NCLT) Indore’s order dated 25.06.2025, which had dismissed an application filed by the Resolution Professional (RP) seeking an extension and exclusion under the Insolvency and Bankruptcy Code, 2016 (IBC).
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The CIRP against Shri Ram Switchgears Ltd. commenced on 29.02.2024. During the process, resolution plans were invited and considered. The NCLT had previously granted two extensions: the first from 28.08.2024 and the second till 24.05.2025.
Before this final deadline expired, the Committee of Creditors (CoC) convened its 15th meeting between 9th and 14th May 2025, where members, with an overwhelming 96.94% majority, resolved to seek a 30-day extension and exclusion of 148 days. This delay was primarily attributed to the judicial process involved in replacing the Interim Resolution Professional (IRP), which had impacted the progress of the CIRP.
Revised resolution plans had already been submitted by the Prospective Resolution Applicants (PRAs) during the 15th CoC meeting, but more time was required to finalize signed copies and ensure compliance before voting. It was further noted that the 16th CoC meeting held on 21.05.2025 had resolved to put the revised resolution plan to vote starting 27.06.2025. However, the rejection of the RP’s extension plea on 25.06.2025 rendered the voting process stalled.
The NCLAT, comprising Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member), found merit in the appellant’s submission. The Bench observed that while the Supreme Court has held in Essar Steel India Ltd. v. Satish Kumar Gupta that extension beyond 330 days is to be exercised cautiously, the facts of the present case justified the exception.
The Tribunal noted that even the NCLT, in its own order, acknowledged that the delay of 148 days was due to judicial pendency and the inaction of the previous IRP. The appellate bench emphasized that “only the voting on the plan is still to be completed,” and resolution was very much in sight.
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The bench stated that the object of the CIRP is to achieve resolution and not to let the process fail on technicalities when revival is within reach.
The NCLAT set aside the NCLT’s order, granted the exclusion of 148 days from the CIRP timeline due to unavoidable judicial delays, and further allowed a 30-day extension from the date of the order. The RP has now been directed to complete the CIRP within this extended period and submit the resolution plan before the adjudicating authority thereafter.
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