UCO Bank Vs C.A. Navin Kumar Khandelwal (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) Delhi has overturned an order by the Adjudicating Authority, granting an extension to the Corporate Insolvency Resolution Process (CIRP) of M/s. Shri Ram Switchgears Limited. UCO Bank, the appellant, challenged the Adjudicating Authority’s decision of June 25, 2025, which had rejected the Resolution Professional’s (RP) plea for a 30-day extension and the exclusion of 148 days from the CIRP timeline.
The CIRP for Shri Ram Switchgears Limited commenced on February 29, 2024. The process had already received two extensions, with the last one expiring on May 24, 2025. Before this deadline, the Committee of Creditors (CoC), holding a 96.94% vote share, resolved to seek a further 30-day extension and the exclusion of 148 days. This exclusion was sought due to delays attributed to the process of replacing the Interim Resolution Professional (IRP). A revised resolution plan with an increased offer was presented, but additional time was required for submitting signed copies and completing pending compliances. Voting on this plan was scheduled to begin on June 27, 2025, but was halted by the Adjudicating Authority’s rejection of the extension.
UCO Bank argued that while extensions beyond 330 days are typically granted only in exceptional circumstances, a principle established by the Supreme Court in Essar Steel India Ltd. Vs. Satish Kumar Gupta & Ors., this case qualified as such. The bank highlighted that a resolution was nearly achieved, with only voting pending, and that the Adjudicating Authority itself had acknowledged 148 days of delay due to judicial pendency and IRP inaction. The RP also supported the appeal, confirming the CoC’s resolution for the extension.
