2019 (8) TMI 1583 - Tri - Insolvency and Bankruptcy

Directions for exclusion of certain time period from the Corporate Insolvency Resolution Process and further extending the time period of the process - HELD THAT - The application is wholly incomplete and lacks in material particulars. Such an application under Section 33(2) of the Code cannot be entertained. Accordingly, the same is dismissed with liberty to file a fresh one by furnishing detailed particulars as per the requirement of law. Application dismissed.

Summary

Issues:
1. Application for exclusion of time period from Corporate Insolvency Resolution Process under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
2. Liquidation of the Corporate Debtor due to failure in resolution process.
3. Appointment of Liquidator as per Section 34(4)(c) of the Code.
4. Directions for the liquidation process and related procedures.

Analysis:
1. The application was filed seeking exclusion of time period and extension of the Corporate Insolvency Resolution Process (CIRP) beyond 180 days under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. Despite the request for exclusion of 278 days, the Tribunal emphasized the importance of time in insolvency proceedings, highlighting the time-bound nature of the Code. The Tribunal noted that over 270 days had already passed, and as the Committee of Creditors (CoC) had resolved for liquidation of the Corporate Debtor, the Tribunal invoked Section 33(1)(a) to order liquidation.

2. The Tribunal, based on the facts presented, ordered the liquidation of the Corporate Debtor, Shilpi Cable Private Limited, in accordance with Chapter III of the Insolvency and Bankruptcy Code, 2016. The Tribunal appointed Mr. Sukhdev Madnani as the Liquidator in the absence of the Resolution Professional's consent, as required by Section 34(4)(c) of the Code. The Tribunal directed the Liquidator to follow the prescribed procedures for liquidation, issue a Public Announcement, communicate the order to relevant authorities, and investigate the financial affairs of the Corporate Debtor.

3. The Tribunal dismissed the application for extension/exclusion of time, citing the expiry of the statutory period and the CoC's decision for liquidation. In the absence of the Resolution Professional's consent, Mr. Sukhdev Madnani was appointed as the Liquidator. The Tribunal issued specific directions for the liquidation process, including the submission of a Preliminary Report within seventy-five days from the liquidation commencement date, investigation of financial affairs, and handling of pending company applications during the liquidation process.

4. The Tribunal's order included detailed directions for the liquidation process, such as the issuance of a Public Announcement, communication of the order to relevant authorities, commencement of a fresh Moratorium, and adherence to the regulations governing the liquidation process. The Liquidator was tasked with managing the financial affairs, pending company applications, and submitting necessary reports within specified timelines. The order was communicated to financial creditors, the corporate debtor, and the Liquidator for compliance and necessary actions.