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2019 (11) TMI 1469 - Tri - Insolvency and BankruptcyExclusion of time period from CIRP period - exclusion of the time on account of litigation - extension of time by three months beyond the Corporate Insolvency Resolution Profession (CIRP) period of 270 days - HELD THAT - The facts as stated by the applicant clearly shows that after the expiry of 270th day and after the original plan of Ms. Seema Rana was rejected in voting by the COC, the COC received the revised plan of H1 Ms. Seema Rana and also put for voting for approval, though the said action is not permissible under the Code. But the plan submitted by M/s. INR Constructions was not considered on the ground that the same was submitted beyond the last date. The said action of COC is self-contradictory and discriminatory. In cases where CIRP is pending and has not been completed within the period of 330 days the 3rd proviso to Section 12 is applicable. The R.P. shall convene a meeting of the COC and place the Revised Resolution Plan of H1 Ms. Seema Rana and also the resolution plan of M/s. INR Constructions before COC, which consider both the plans and vote upon the same and take appropriate decision either for approving either of the resolution plans or for liquidation of the corporate debtor. In accordance with Section 30(5) of the Code, both the resolution applicants may be allowed to attend the meeting of the COC but shall not have right to vote at the meeting - entire exercise including filing of an application under Section 31 or under 33, as the case may be, shall be completed within a period of 90 days from the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019 as provided for in the third proviso to Section 12(3) of the Code - Application disposed off.
Issues:
1. Exclusion of time on account of litigation and extension of time beyond the CIRP period. 2. Consideration of revised resolution plans and voting by the Committee of Creditors. 3. Applicability of Section 12 of the Insolvency and Bankruptcy Code. 4. Judicial precedents and their impact on the resolution process. Issue 1: Exclusion of time and extension beyond CIRP period The Committee of Creditors (COC) filed CA No. 569/2019 seeking exclusion of time due to litigation and extension of the Corporate Insolvency Resolution Process (CIRP) period beyond the 270 days limit. The COC detailed the timeline of events, including multiple extensions granted for submission of resolution plans. Despite the expiry of the 270-day period, COC meetings were held, decisions were made, and revised plans were considered. Issue 2: Consideration of revised resolution plans After the rejection of the original plan, a revised resolution plan was submitted by a resolution applicant. The COC decided to put the revised plan for voting, although another plan from a different entity was not considered due to being submitted beyond the deadline. The Tribunal noted the contradictory and discriminatory actions of the COC in this regard. Issue 3: Applicability of Section 12 of the Insolvency and Bankruptcy Code The Tribunal highlighted the amendment to Section 12 of the Code, emphasizing the time limits for completing the insolvency resolution process. Reference was made to the Hon'ble Supreme Court's decision regarding the completion period extension and the implications of the latest amendments on the resolution process timelines. Issue 4: Judicial precedents and their impact Citing judicial precedents, including decisions related to the amended provisions of Section 12, the Tribunal underscored the need to adhere to the revised timelines for completing the insolvency resolution process. The Tribunal's order in CA No. 569/2019 directed the COC to consider and vote on the revised resolution plans within a specified timeframe in line with the amended provisions. In conclusion, the Tribunal disposed of CA No. 569/2019 by instructing the Resolution Professional to convene a COC meeting to consider both the revised resolution plan and the plan from another entity. The COC was directed to make a decision on approving a resolution plan or opting for liquidation within 90 days from the commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019. The Tribunal's decision in CA No. 944/2019 was aligned with the order passed in CA No. 569/2019, ensuring consistency in the resolution process.
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