TaxTMI 
TaxTMI 
2026 (6) TMI 646
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....ant : Mr. E. Senthil Kumar, Advocate For the Respondent : None ORDER Oral Judgment: Justice Sharad Kumar Sharma, Member (Judicial): These are two Company Appeals. There happens to be factually marginal difference restricted to, as regards to the respective impugned orders, which are subject matter of challenge in both the Company Appeals. 2. In Company Appeal (AT) (CH) (Ins) No. 261/2026, the Appellant herein, who happens to be the Erstwhile Director and the Personal Guarantor of the Corporate Debtor, has presently put a challenge to the impugned order dated 20.04.2026, that was passed by the Learned NCLT, Amaravati Bench, in IA (IBC)/143/2026 in CP(IB)/82/7/AMR/2022. 3. By virtue of the impugned order, Ld. NCLT after cons....
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....ers himself to be non- suited to be continued in office any further, in order to complete the liquidation process, and hence the said extension of time period for completion of liquidation ought not to have been granted to be utilised by the Liquidator. 6. In accordance with the pleading raised by the Appellant in the memorandum of appeal, he has factually submitted that M/s. Ananda Lakshmi Narasimha Industries India Pvt. Ltd., a company which was registered as such under the Companies Act, 1956, was granted credit facilities by the Financial Creditor, i.e., Central Bank of India, from time to time to the tune of Rs. 33,18,09,761/- and the Appellant thereto in the capacity of being the Director, was also the Personal Guarantor in respect....
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....cation IA/143/2026, seeking an additional extension for a period of 150 days, i.e., from 18.04.2026 to 14.09.2026, but the Learned Tribunal granted extension only for a period of one month. 8. The Learned Counsel for the Appellant has submitted that, in accordance with the Regulation 44 of IBBI (Liquidation Process) Regulations, 2016, the said extension could not have been granted, because it runs contrary to the very spirit of Regulation 44 (2) and thus the impugned order happens to be bad in the eyes of law. The second limb of the argument of the Ld. Counsel for the Appellant has been that in light of the provisions of Regulation 7A of IBBI (Insolvency Professionals) Regulations, 2016, AFA, i.e., "Authorisation of Assignment", of an In....
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....n be granted for completion of Liquidation process in the wider interest to meet the objective of the Code of maximising the value of the CD. The Ld. Tribunal while concluding the order, observed that since the SCC unanimously resolved to extend the liquidation period for completing the liquidation process, the same was granted, in consonance with the spirit of the provisions contained under Regulation 44 (2) of the IBBI (Liquidation Process) Regulations, 2016. Even otherwise also, if we look into the period for which the extension was granted, i.e., w.e.f. from 18.04.2026 to 17.05.2026, in fact, for all practical purposes, the said period has already expired, and the liquidator has already availed the benefit of the extension granted by vi....
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....ch to continue any further in the status of being the Bankruptcy Trustee. The Learned Tribunal while dealing with the said plea taken by the Appellant in IA(IBC) 72/2026, and while passing the impugned order, has considered the decision, that was taken by the IBBI, which stood communicated vide its email communication as extracted in the order. In the said communications, it was observed that, in accordance with the Authorisation of Assignment (AFA), as it was granted to the Bankruptcy Trustee, he has to continue with the process, in accordance with the proviso of Regulations 7A as contained under the IBBI (Insolvency Professionals) Regulations, 2016. For the purposes of brevity, Regulation 7A is extracted hereunder, "7A. An insolv....