2019 (8) TMI 1482 - Tri - Insolvency and Bankruptcy

Extension of time limit for Resolution process by 90 days - section 12 of Insolvency and Bankruptcy Code, 2016 Read with Regulation 40 of the Insolvency and Bankruptcy Board of India, Regulations, 2016 - HELD THAT - The minutes of 5th COC meeting which is called for seeking extension of CIRP by another 90 days. The members with aggregate voting share of 93.68% of total voting share in COC and 100% of voting share of the members present passed resolution seeking the extension of CIRP by another 90 days - The RP is authorized to move the application before Adjudicating Authority for extension of CIRP. The grounds for extension is to complete the CIRP of the corporate debtor and comply with the timelines as specified in CIRP Regulations and under IBC, 2016 and for the purpose to extend the CIRP period for 90 days beyond 180 days. These are genuine grounds for extension of CIRP by another 90 days. CIRP is extended by another 90 days beyond 180 days with effect from 14.08.2019 - Application allowed.

Summary

Issues:
Extension of time limit for Resolution process by 90 days under section 12 of Insolvency and Bankruptcy Code, 2016 Read with Regulation 40 of the Insolvency and Bankruptcy Board of India, Regulations, 2016.

Analysis:
The Interlocutory application was filed by the Resolution Professional seeking an extension of the time limit for the Resolution process by 90 days under the Insolvency and Bankruptcy Code, 2016. The Tribunal had earlier admitted the Petition filed by the operational creditor against the Corporate debtor and appointed an Interim Resolution Professional. Subsequently, a Resolution Professional was appointed to replace the Interim Resolution Professional. The Corporate Insolvency Resolution Process (CIRP) commenced on a specific date, and the Committee of Creditors (COC) was formed, holding meetings at periodic intervals.

During the fifth COC meeting, the Members passed a resolution with a significant majority seeking an extension of the time limit for the Resolution Process and moratorium by ninety days. The Resolution Professional then filed the application before the Tribunal under section 12 of the Insolvency and Bankruptcy Code, 2016, requesting the extension of the CIRP period by another 90 days beyond the initial 180 days. The grounds for the extension were to complete the CIRP of the Corporate debtor and comply with the specified timelines under the CIRP Regulations and the IBC, 2016.

Upon review of the application and the minutes of the fifth COC meeting, the Tribunal found the reasons provided by the Resolution Professional to be genuine and in line with the requirements for extending the CIRP period. Consequently, the Tribunal allowed the application, extending the CIRP by another 90 days beyond the initial 180 days, effective from a specified date. The application was then disposed of accordingly, granting the requested extension as per the provisions of the Insolvency and Bankruptcy Code, 2016.