NCLAT allows 45 days extension to complete CIRP as a Final Extension [Read Order]

The New Delhi bench of the National Company Law Appellate Tribunal (NCLAT) allowed a 45 days extension to complete the Corporate Insolvency Resolution Process (CIRP). The extension was to receive the final plans and complete the voting therein.

.ASREC (India) Ltd, the appellant challenged the order dated 30.06.2025, by which application was filed by the RP for extension of 90 days time beyond 18.04.2025 was rejected. In paragraph 39 of the judgment, adjudicating authority has given reasons for rejecting the extension of 90 days as prayed for.

Counsel for the appellant challenging the order submitted that in the Corporate Insolvency Resolution Process (CIRP), 6 resolution plans have already been received and he submitted that only submission of final plans and voting was left to be completed. Counsel for the applicant has referred to paragraph 48 of the application filed by the RP, where details of 19th CoC Meeting held on 17.04.2025 were referred to. It is submitted that according to the time extended the CIRP period was up to 18.04.2025 and CoC in 19th Meeting resolved to seek 90 days extension with 95.36% voting shares, hence the application was filed.

Counsel for the RP submitted that an affidavit has been filed by the appellant dated 02.08.2025. The Applicant is filing the present Application seeking extension of period of the Corporate Insolvency Resolution Process by a period of 90 days beyond 19.04.2025 as approved 96.04% voting share in favour by the members of CoC through e-voting which was completed on 23.04.2025.

The adjudicating authority has taken the view that there are no exceptional circumstances to allow the period of 90 days as prayed for. Adjudicating authority itself has noticed the judgment of the Supreme Court in ‘CoC of Essar Steel India Ltd.’ Vs. ‘Satish Kumar Gupta & Ors.’ reported in [(2020) ] that the period prescribed under 12 is not mandatory and the Court retains jurisdiction to extend if there are exceptional circumstances justifying the extension.

It was evident that in the present case the period of 465 days including 135 days extension is already over and the period was extended by adjudicating authority till 18.04.2025 in the CIRP. Thus, the period till 19.07.2025 was available to the CoC and the RP in the Meeting of the CoC which was held on 17.04.2025. Counsel for the appellant has filed an affidavit where now only request as a last extension is of 45 days to receive the final plans and complete the voting therein.

The Tribunal viewed that insofar as the order of the adjudicating authority refusing extension of 90 days that does not warrant any interference however looking to the fact that 6 resolution applicants are already there which might lead to resolution of the corporate debtor and in the affidavit filed on behalf of the CoC now prayer is of 45 days as a final extension after which no prayer be entertained for any extension in the CIRP period.

The bench of Justice Ashok Bhushan, Chairperson and Barun Mitra, Member (Technical) allowed 45 days extension from today during which period, the CIRP be completed and resolution plan, if any, approved by the CoC be placed before the adjudicating authority by filing an application.

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