Liquidation period extension may be limited to the time reasonably required for asset realisation and distribution.

Where liquidation remains incomplete because asset demarcation, sale steps and distribution still need to be carried out, the Tribunal may grant only a limited extension under the liquidation regulations. The request for a one-year extension was not fully accepted, although the process had not finished within the original period and the excluded lockdown period was relevant to the timeline. The Tribunal found that some additional time was necessary for effective asset realisation, but confined the extension to what was reasonably required and extended the liquidation period by six months.

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Issues: Whether the liquidation period of the corporate debtor could be extended under the liquidation regulations and, if so, to what extent.

Analysis: The application sought a one-year extension of the liquidation period on the ground that the assets could not yet be liquidated, demarcation of the company's assets from third-party property was still required, and further steps were needed for sale and distribution. The extended timeline also had to account for the previously excluded lockdown period. The Tribunal accepted that the liquidation process had not been completed within the original period and found that some additional time was necessary, but did not accept the full period sought.

Conclusion: The request for extension was allowed only in part, and the liquidation period was extended by six months.

Ratio Decidendi: Where completion of liquidation requires further steps necessary for effective asset realisation, the Tribunal may grant a limited extension of the liquidation period under the regulations, but the extension may be confined to the time reasonably required.

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