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2020 (2) TMI 1534 - Tri - Companies LawSeeking extension of the period of CIRP - work could not be completed due to non-cooperation from the promoters of the Corporate Debtor - HELD THAT - It is apparent from the materials available on record that the Applicant could not perform his duties properly due to the non-availability of records and non-cooperation from the promoters of the Corporate Debtor. The CoC is of the opinion that the Corporate Debtor can be led to a successful resolution. It is therefore imperative that the period of CIRP is extended. The period of CIRP is extended by 60 days with effect from 07.03.2020. The Applicant and the CoC are directed to take all possible steps under the Insolvency and Bankruptcy Code, 2016 and Rules made thereunder to bring about a successful resolution of the Corporate Debtor - Application is allowed without contest.
Issues: Application for extension of the period of Corporate Insolvency Resolution Process (CIRP)
In this judgment by the National Company Law Tribunal, Amaravathi Bench, the Resolution Professional of the Corporate Debtor filed an application seeking an extension of the period of CIRP. The Tribunal had earlier admitted the Company Petition and appointed the Resolution Professional. However, the Resolution Professional faced challenges as there were no records available, and the promoters and auditors were uncooperative. Despite efforts to obtain necessary information, the Resolution Professional was unable to proceed with the evaluation. The Committee of Creditors (CoC) supported the extension, believing that a successful resolution was still possible. The Tribunal noted the difficulties faced by the Resolution Professional and granted the extension of 60 days from a specified date to allow for further proceedings under the Insolvency and Bankruptcy Code, 2016. The primary issue in this case was the Application for extension of the period of Corporate Insolvency Resolution Process (CIRP). The Resolution Professional encountered obstacles due to the non-availability of records and lack of cooperation from the promoters and auditors of the Corporate Debtor. Despite efforts to obtain necessary information, the Resolution Professional faced challenges in performing duties essential for the CIRP. The Committee of Creditors (CoC) supported the extension, believing that a successful resolution of the Corporate Debtor was still achievable. The Tribunal acknowledged the difficulties faced by the Resolution Professional and granted the extension of 60 days from a specified date to facilitate the continuation of the resolution process under the Insolvency and Bankruptcy Code, 2016. The Tribunal had earlier admitted the Company Petition and appointed the Resolution Professional. However, the Resolution Professional faced significant challenges as there were no records available, and the promoters and auditors were uncooperative. Despite efforts to obtain necessary information, the Resolution Professional was unable to proceed with the evaluation essential for the CIRP. The Committee of Creditors (CoC) supported the extension, believing that a successful resolution was still possible. The Tribunal acknowledged the difficulties faced by the Resolution Professional and granted the extension of 60 days from a specified date to allow for further proceedings under the Insolvency and Bankruptcy Code, 2016. The Resolution Professional, in this case, encountered obstacles in performing duties necessary for the Corporate Insolvency Resolution Process (CIRP) due to the absence of records and noncooperation from the promoters and auditors of the Corporate Debtor. Despite efforts to obtain the required information, the Resolution Professional was unable to proceed with the evaluation process. The Committee of Creditors (CoC) supported the extension of the CIRP period, expressing confidence in the potential for a successful resolution. Consequently, the Tribunal granted the extension of 60 days from a specified date to enable the Resolution Professional and the CoC to take necessary steps under the Insolvency and Bankruptcy Code, 2016, towards achieving a successful resolution of the Corporate Debtor.
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