2017 (12) TMI 1628 - Tri - Insolvency and Bankruptcy

Corporate insolvency procedure - seeking extension of time for completion of the resolution process - Held that - This resolution has been passed by 99.67% of the voting share of Committee of Creditors and later on two more creditors exercised voting rights by e-voting which ultimately resulted the resolution being passed with 100% voting in favour of the resolution for seeking extension. Having heard the learned counsel for the applicant and the reasons explained in the resolution itself which have been highlighted in the instant application, the application deserves to be accepted. Accordingly, the period of 180 days which is stated to be expiring on 07.01.2018 is extended for 90 days in terms of Section 12 (3) of the I & B Code, 2016 for completion of the resolution process.

Summary

Issues: Application for extension of time for completion of resolution process under Section 12 of the Insolvency and Bankruptcy Code, 2016.

Analysis:
The application filed by the Resolution Professional sought an extension of time for completing the resolution process under Section 12 of the Insolvency and Bankruptcy Code, 2016. The basis for this application was the decision of the Committee of Creditors in its 3rd meeting held on 07.12.2017. The reasons for the delay in the process were outlined, including delayed appointment of the Resolution Professional, non-appointment of Registered Valuers by the Interim Resolution Professional, and subsequent delays in submission of valuation reports. The Resolution Professional had received Expression of Interest from five applicants for submitting a Resolution Plan, and the last date for submission was extended to 18.12.2017. It was mentioned that the approval of the Resolution Plan might not be completed by 07.01.2018, hence an extension of 90 days beyond the stipulated 180 days was sought in accordance with the relevant regulations.

The resolution for seeking an extension of time was passed with 99.67% voting share of the Committee of Creditors, and later two more creditors exercised their voting rights by e-voting, resulting in 100% voting in favor of the resolution. The Tribunal, after considering the application, the reasons provided in the resolution, and hearing the counsel for the applicant, deemed the application deserving of acceptance. Consequently, the period of 180 days expiring on 07.01.2018 was extended for 90 days as per Section 12(3) of the Insolvency and Bankruptcy Code, 2016, to facilitate the completion of the resolution process.

The Tribunal disposed of the application, granting the extension of time, and directed the communication of the order to the counsel for the applicant for necessary action.