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2025 Supreme(Online)(NCLT) 3030
NATIONAL COMPANY LAW TRIBUNAL
PRABHAT KUMAR, JUSTICE V.G. BISHT (Retd.), JJ
Mukesh Kumar Jain VS
IA(I.B.C)/3062(MB)2025 | C.P. (IB)/306(MB)2022
For the Appellants/Petitioners: Adv. Zulfiq Multani
For the Respondents: No counsel mentioned
The Tribunal cannot extend the 180-day moratorium period in personal insolvency cases as it is mandatory under the Insolvency and Bankruptcy Code.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 94(1), 101(1) - Personal Insolvency Resolution Process - Application for extension of PIRP period by 90 days - Court clarifies that the moratorium cannot be extended beyond 180 days as mandated by law. (Paras 10, 11)
(B) Application - Procedure - The Code does not stipulate a maximum period for concluding insolvency resolution for personal guarantors; thus, the period for the submission of the repayment plan is directory. (Para 10)
Facts of the case:
The applicant seeks a 90-day extension for a personal insolvency resolution process for the personal guarantor Komal Manoj Beriwal, initially admitted on 14.11.2024. The creditors raised concerns over the repayment plan, prompting the need for an extension.
Findings of Court:
The court finds it lacks jurisdiction to extend the moratorium beyond 180 days as prescribed by the Code, concluding that the process is time-bound.
Issues: The primary issue was whether the moratorium on creditors' actions could be extended beyond 180 days.
Ratio Decidendi: The Tribunal clarified that it cannot extend the moratorium, which is a mandatory period of 180 days, limiting judicial discretion in these matters.
Result: Application is disposed of.
NATIONAL COMPANY LAW TRIBUNAL
COURT ROOM NO. 1
MUMBAI BENCH
Item No. 12
IA(I.B.C)/3062(MB)2025 IN C.P. (IB)/306(MB)2022
CORAM:
SH. PRABHAT KUMAR JUSTICE V.G. BISHT (Retd.)
HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)
ORDER SHEET OF THE HEARING ON 09.07.2025
NAME OF THE PARTIES: KOMAL MANOJ BERIWAL
Section 94(1) of the Insolvency and Bankruptcy Code, 2016 and Rule 11
ORDER
IA(I.B.C)/3062(MB)2025
1. Adv. Zulfiq Multani for Applicant/RP in IA 3062 of 2025 is present through VC.
2. This Application IA No.3062 of 2025 filed by the Applicant, Mukesh Kumar Jain,
Resolution Professional of Komal Manoj Beriwal, on 01.07.2025 under Section 94(1) of the Insolvency and Bankruptcy Code, 2016. The Applicant has made
following prayers:
a. To pass an Order allowing the extension of the Personal Insolvency
Resolution Process (PIRP) Period of Komal Manoj Beriwal, the Personal Guarantor, by 90 (ninety) days (beyond 180 days of PIRP without extending moratorium) i.e., from 13.05.2025 tillll.08.2025 under
Rules 11 r/w. 15 of the National Company Law Tribunal Rules, 2016;
b. To pass such other/ further Order(s) as this Hon'ble Tribunal may deem
fit and proper in the facts and circumstances of the case.
3. The Personal Guarantor namely Mrs. Komal Manoj Beriwal, had filed the captioned Petition bearing CP (IB) No. 30612022 u/s. 94(1) of IBC, 2016 seeking to initiate PIRP against herself. Thereafter, the Personal Guarantor was admitted into Personal Insolvency Resolution Process vide Order dated 14.11.2024 (in short, "PIRP Admission Order"), whereby Applicant was appointed as the Resolution Professional ("RP") of the Personal Guarantor.
4. The Applicant caused to issue Public Notice u/s. 102 of the IBC, 2016 dated
19.1l.2024 published on 20.1l.2024 in 2 (two) newspapers viz., (1) Financial Express (English Newspaper: Mumbai Edition) & (2) Pratahkal (Vernacular- Marathi Newspaper: Mumbai Edition), whereby creditors of the Personal Guarantor were called upon to submit their claims by 10.12.2024. Thereafter, the Applicant has constituted the Committee of Creditors comprising of 3 (three) Financial Creditors having total considered claim amount aggregating to Rs.
19,11,08,259/-.
5. The Applicant received repayment plan from Personal Guarantor via email dated
10.02.2025, accordingly, he prepared the Report on Repayment Plan u/s. 106 of IBC, 2016 dated 04.03.2025. Further, the Applicant convened the 1st COC Meeting on 20.03.2025, whereby he placed on record the repayment plan received from the guarantor. However, the Creditors discussed in details about repayment plan and shown their deep concern that the two banks (i.e. The Malad Sahakari Bank and Janaseva Sahakari Bank) only secured creditors in above case and they are getting very less amount as compared to their Security. Therefore, the Representative of Mrs. Komal Manoj Beriwal requested for time to submit revised best plan. So, the Repayment Plan was taken up for voting and consequent resolution/s were deferred.
6. During the said 15th COC Meeting, the creditors sought to carry out fresh valuation of Property Situated at D-201, Phase-I, Satelite Garden, AK Vaidya Marg, Film City Road, Goregaon East, Mumbai-400063 and requested the representative of Mrs. Komal Manoj Beriwal to provide help for above. Moreover, the Creditors also requested to the representative to provide details of other immovable property in the name of Mrs. Komal Manoj Beriwal.
7. It is stated that, requisite documents and various steps have to be carried out by the Applicant upon receipt of revised repayment plan, in compliance with the provisions of the Code and regulations set out under the PIRP Regulations, thus, requiring some extension of time in the PIRP Process.
8. Since the PIRP Admission Order was passed on 14.11.2024, hence PIRP Process would expire after period of 180 days on 13.05.2025, as per Section 101(1) of IBC, 2016. Therefore, the Applicant has prayed for Extension of 90 (ninety) days (beyond 180 days of PIRP) i.e., from 13.05.2025 til
