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2020 (2) TMI 1390 - Tri - Insolvency and BankruptcyExtension of 50 days in the CIR Process period - Section 60(5) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - In the present case, the significant time being consumed in the litigation, which was beyond the control of the IRP, and the fact that it has the possibility of Resolution, the Application merits consideration. Further, the rejection of the present Application shall result in Liquidation of the Corporate Debtor, which is not the objective of IBC, if a resolution is a possibility - Considering the facts and the Resolution made by the COC in its meeting dated 28.01.2020, this Bench extends the CIR Process of the Corporate Debtor M/s. Alpine Realtech Private Limited by another 50 days from today, which will be the final opportunity to reach a Resolution, if any. Application allowed.
Issues:
Extension of CIR Process period under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. Analysis: The case involved an application filed by the Interim Resolution Professional (IRP) seeking an extension of 50 days in the Corporate Insolvency Resolution Process (CIRP) period under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The background of the case revealed that the Financial Creditor had initiated the CIRP against the Corporate Debtor, and the IRP was appointed accordingly. The IRP highlighted that the CIR Process period had expired, and due to the nature of the Corporate Debtor being in the Real Estate sector with a significant portion of claims from Home Buyers, an extension was necessary for the resolution process. The IRP presented details of the time consumed in litigation, which was beyond their control, leading to the request for an extension. The IRP further informed that a prospective Resolution Applicant required additional time to submit the Resolution Plan, prompting the Committee of Creditors (CoC) to decide on seeking an extension. The IRP provided evidence of the CoC meeting where resolutions for time extensions were passed unanimously through e-voting. Additionally, the IRP cited a judgment from the Hon'ble Supreme Court regarding the permissible extension of the CIRP period beyond the statutory limit of 330 days, emphasizing the importance of considering exceptional cases where delays were not attributable to the litigants. Considering the circumstances, including the time consumed in unavoidable litigation, the potential for resolution, and the objective of the Insolvency and Bankruptcy Code to avoid liquidation if resolution is viable, the Bench granted the extension of the CIR Process by 50 days. The decision aimed to provide a final opportunity to achieve a resolution for the Corporate Debtor, M/s. Alpine Realtech Private Limited. The judgment highlighted the discretion of the Adjudicating Authority and/or Appellate Tribunal to extend the CIRP period in exceptional cases where delays were not the fault of the litigants, aligning with the principles outlined in the Supreme Court judgment referenced in the case. In conclusion, the Tribunal allowed the application for the extension of the CIR Process period, emphasizing the need to balance the statutory timelines with the practicalities of the resolution process and the overarching objective of the Insolvency and Bankruptcy regime to facilitate resolutions over liquidations in suitable cases.
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