2020 (1) TMI 1491 - Tri - Insolvency and Bankruptcy

Seeking relief of extension of CIRP period by 90 days - Section 12(3) of Insolvency and Bankruptcy Code, 2016 - HELD THAT - The extension of 90 days time of CIRP period as sought for, on the strength of resolution passed by the COC with 99.214% voting in its meeting, is granted as the same is inconsonance with section 12(2) of the Code and therefore, fulfils the requisite condition for extension of CIRP period. The CIRP period is hereby extended by 90 days and therefor the CIRP will come to an end on 24.01.2020 - application allowed.

Summary

Issues: Application for extension of CIRP period under Section 12(3) of the Insolvency and Bankruptcy Code, 2016.

In the judgment delivered by the National Company Law Tribunal, Mumbai Bench, the Resolution Professional of the Corporate Debtor filed an Application seeking an extension of the Corporate Insolvency Resolution Process (CIRP) period by 90 days, as allowed under Section 12(3) of the Insolvency and Bankruptcy Code, 2016. The Tribunal had previously admitted the petition and imposed a Moratorium against the Corporate Debtor, appointing the Resolution Professional as the Interim Resolution Professional. The Moratorium period was set to end on 27.10.2019 after 180 days. The Resolution Professional sought an extension of the CIRP period from this date. The Tribunal granted the extension based on a resolution passed by the Committee of Creditors (COC) with 99.214% voting, in compliance with Section 12(2) of the Code. Consequently, the CIRP period was extended by 90 days, and the CIRP was scheduled to conclude on 24.01.2020. The Miscellaneous Application was allowed and disposed of accordingly.