2019 (3) TMI 1660 - Tri - Insolvency and Bankruptcy

Initiation of CIRP - Exclusion of time period - exclusion of period under section 60(5) (c) of IBC, 2016, read with Rule 14 and Rule 34 of NCLT Rules, 2016 - HELD THAT - We have passed a detailed order for exclusion of 21 days, i.e. from 14.12.2018 to 3.1.2019 for computation of statutory period for completion of CIRP, i.e. 270 days. If the applicant is aggrieved by this order, she should have approached the Appellate Authority. However, during argument, when it was enquired to the RP whether any resolution plan is under consideration, then it was informed by the RP that at present no plan is under consideration and there is no hope for getting any proposal in future, even after extension of time. It is pertinent to mention that 270 days, even after exclusion of 21 days, has expired on 6.1.2019 - in no circumstances statutory period for completion of CIRP can be extended beyond 270 days - There is no justifiable ground for exclusion of further period. It is also important to point out that neither resolution plan is under consideration nor there is any possibility of any resolution shortly. Therefore, no question arises for granting further exclusion of any period for computation of 270 days, since no resolution plan is under consideration and the statutory period has been expired. Order of liquidation passed - moratorium declared.

Summary

Issues:
- Exclusion of period under section 60(5)(c) of IBC, 2016
- Exclusion of specific days from CIRP
- Consideration of exclusion due to RP's registration cancellation
- Application for extension of statutory period for completion of CIRP
- Applicability of Hon'ble Supreme Court and NCLAT judgments

Exclusion of period under section 60(5)(c) of IBC, 2016:
The RP filed MA 223/2019 seeking exclusion of a period under section 60(5)(c) of IBC, 2016, read with NCLT Rules, 2016. The application aimed to exclude 82 days from the CIRP, with detailed documentation provided for the specific days sought to be excluded.

Exclusion of specific days from CIRP:
The RP requested the exclusion of 46 days due to the cancellation of the erstwhile RP's registration by IBBI. Despite a previous rejection of a similar request, the Tribunal considered the circumstances and excluded the period from 14.12.2018 to 3.1.2019, totaling 21 days, for the computation of the CIRP period.

Consideration of exclusion due to RP's registration cancellation:
The RP emphasized that the erstwhile RP was unauthorized to perform duties after the registration cancellation. The Tribunal had directed the erstwhile RP to continue until the appointment of a new RP, leading to the exclusion of the mentioned period for computation purposes.

Application for extension of statutory period for completion of CIRP:
Despite the exclusion granted, further extension requests were denied as there was no resolution plan under consideration, and the statutory period had expired. Citing the Hon'ble Supreme Court's decision in K. Shashidhar, the Tribunal emphasized the strict adherence to the 270-day limit for completing the CIRP.

Applicability of Hon'ble Supreme Court and NCLAT judgments:
The judgments of the Hon'ble Supreme Court and NCLAT were referenced to establish the legal framework for exclusions in the CIRP process. The Tribunal highlighted the specific criteria outlined by NCLAT for justifiable exclusions, none of which applied to the present case, leading to the order for liquidation of the Corporate Debtor. The Tribunal appointed the RP as the Liquidator with specified powers and responsibilities in the liquidation process.