2020 (1) TMI 1349 - Tri - Insolvency and Bankruptcy

Seeking for extension of time of the Corporate Insolvency Resolution Process - Section 12(2) (3) of the Insolvency and Bankruptcy Code, 2016 and Regulation 40 of IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 r/w. attendant Rules Regulations - HELD THAT - Taking in to consideration the above order passed by the Hon'ble Supreme Court of India in DR. ESTHER MALINI VICTOR VERSUS ORIENTAL BANK OF COMMERCE AND ORS. 2019 (10) TMI 1372 - SC ORDER it is represented by the Learned Counsel for the Applicant/RP that the CoC in its meeting dated 24.12.2019 and consequent to the e-voting a resolution was unanimously passed on 07.01.2020 and approved the resolution seeking for extension of time before this Tribunal under relevant provisions of IBC, 2016. In view of the averments made in the application and the submissions made by the Learned Counsel for the Applicant/RP and also taking into consideration the order passed by the Hon'ble Supreme Court of India dated 25.10.2019, wherein the RP is directed to keep the company as a going concern, the CIRP is hereby extended by a further period of 90 days with effect from 13.01.2020 - Application allowed.

Summary

Issues:
Extension of time for Corporate Insolvency Resolution Process.

Analysis:
The judgment pertains to an application seeking an extension of time for the Corporate Insolvency Resolution Process (CIRP) of a Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. The application was filed under sections 12(2) & (3) of the Code and Regulation 40 of IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016. The Applicant/RP requested a further 90-day extension as the initial period was set to expire on 12.01.2020. It was highlighted that the Director of the Corporate Debtor had previously appealed the initiation of the CIR Process, leading to legal proceedings in the NCLAT and subsequently in the Supreme Court of India. The Supreme Court's order on 25.10.2019 directed the Resolution Professional (RP) to draw necessary amounts from the frozen account to ensure the company's continuity as a going concern.

The Committee of Creditors (CoC) met on 24.12.2019 and unanimously passed a resolution on 07.01.2020, approving the extension of time for the CIRP. Considering the Supreme Court's directive to maintain the company as a going concern, the Tribunal granted the extension of the CIRP by a further 90 days from 13.01.2020. The application for extension of time was allowed based on the representations made by the Applicant/RP and the legal directives from the Supreme Court. The judgment emphasizes the importance of ensuring the continuity of the Corporate Debtor as a going concern during the insolvency resolution process.