ASREC (India) Ltd Vs Kamal Agarwal RP of Torque Automotive Pvt. Ltd. (NCLAT Delhi)
This case concerns an appeal filed by ASREC (India) Ltd. against an order issued by the Adjudicating Authority (National Company Law Tribunal) in Ahmedabad on June 30, 2025. The Adjudicating Authority had rejected an application from the Resolution Professional (RP) of Torque Automotive Private Limited seeking a 90-day extension of the Corporate Insolvency Resolution Process (CIRP). The rejection was based on the Adjudicating Authority’s view that the CIRP had already been excessively prolonged (465 days) without exceptional circumstances to justify a further extension.
The Adjudicating Authority, in its order, noted that the 465-day period was sufficient and that granting more time would contradict the objectives of the Insolvency and Bankruptcy Code, 2016 (IBC). As a result, it directed the RP to file an application for liquidation under Section 33(1)(a) of the IBC, since no resolution plan had been approved within the stipulated period.
Arguments and Proceedings
The appellant, ASREC, argued that despite the protracted timeline, significant progress had been made. Six resolution plans had already been received, and the only remaining steps were the submission of final plans and the completion of the voting process. The Committee of Creditors (CoC) had voted with a 95.36% majority to seek the 90-day extension, underscoring their commitment to finding a resolution rather than resorting to liquidation. The CoC’s meeting minutes showed that they had allowed prospective resolution applicants 7-10 days to submit addendums clarifying and enhancing their offers, with a final submission deadline of April 30, 2025. This was the basis for the CoC’s request for a 90-day extension.
