2020 (10) TMI 1256 - Tri - Insolvency and Bankruptcy

Seeking extension of time period of Corporate Insolvency Resolution Process - Section 40(2) of CIRP Regulation and Section 12(2) of IBC 2016 - HELD THAT - It is seen from that report, a resolution was passed to file an application under Section 40(2) of CIRP Regulation and as per Section 12(2) of IBC 2016 for a time period extension of 45 days with effect from 12.10.2020 to 26.11.2020 so as to consider and evaluate the revised Resolution Plan. The prayer for extension period of Corporate Insolvency Resolution Process for another 45 days with effect from 12.10.2020 is allowed - The Resolution Professional is directed to complete the Corporate Insolvency Resolution Process on or before 26.11.2020.

Summary

Issues:
1. Extension of time period for Corporate Insolvency Resolution Process
2. Delay in appointment of Registered Valuers
3. Delay in completing Information Memorandum

Extension of Time Period for Corporate Insolvency Resolution Process:
The Resolution Professional filed an application seeking an extension of 45 days to complete the Corporate Insolvency Resolution Process of a company. The delay was attributed to the completion of audits for the years 2017, 2018, and 2019, causing a delay in the resolution process. The Committee of Creditors (CoC) unanimously passed resolutions for extensions, with the final request being for an additional 45 days. The Tribunal granted the extension, directing the Resolution Professional to conclude the process by a specified date.

Delay in Appointment of Registered Valuers:
According to Section 27 of the IBC, the Resolution Professional must appoint registered valuers within a specified timeframe. In this case, there was a delay of 28 days in appointing valuers due to the need to provide asset details for valuation purposes. The Tribunal, considering the circumstances, condoned this delay, recognizing the genuine reasons provided by the Resolution Professional.

Delay in Completing Information Memorandum:
Regulation 36(1) mandates the submission of the information memorandum within a specific period. However, due to delays in getting accounts audited, there was a delay of 21 days in publishing the memorandum. The Tribunal accepted the explanation provided and condoned this delay as well, acknowledging the genuine reasons behind the delay.

Conclusion:
The Tribunal allowed the extension of time for the Corporate Insolvency Resolution Process, condoning the delays in appointing registered valuers and completing the information memorandum. The Resolution Professional was directed to adhere to the new timeline for the resolution process. The application was disposed of based on the considerations and resolutions made by the Committee of Creditors and the genuine reasons presented for the delays.