2021 (7) TMI 1283 - Tri - Insolvency and Bankruptcy

Exclusion of time period lapsed due to non-availability of records, assets, books of accounts and Covid-19 from the ongoing CIRP - section 19(2) of the I B code, 2016 - HELD THAT - The Applicant states that by way of present Application it seeks an exclusion of the intervening period from the commencement of CIRP i.e., from 05.11.2019 till the disposal of application filed under section 19(2) of I B Code, 2016 filed on 07.12.2019. This bench, after taking into consideration the facts and circumstances of the present case and following the law as laid down by the Hon'ble Apex court in COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS 2019 (11) TMI 731 - SUPREME COURT , grants a period of 90 days so as to complete a total of 270 days, w.e.f 03.05.2020 i.e., date of completion of 180 days, to the Applicant for completing the CIRP of the corporate debtor in a time bound manner as per the provisions of the I B Code, 2016. Application disposed off.

Summary

Issues: Application for exclusion of time period in ongoing CIRP due to non-availability of records, assets, books of accounts, and Covid-19.

Analysis:
1. The Applicant, represented by Mr. Harish Taneja, filed an application seeking the exclusion of the time period lapsed due to non-availability of records, assets, books of accounts, and Covid-19 from the ongoing Corporate Insolvency Resolution Process (CIRP).
2. The Applicant highlighted that despite efforts, the corporate debtor did not hand over the necessary records, which led to delays. An application was filed under section 19(2) of the Insolvency and Bankruptcy Code, 2016, in December 2019, but the Corporate Debtor failed to appear despite multiple tribunal notices.
3. The Applicant referred to the 5th meeting of the Committee of Creditors (COC) where the issue of excluding a certain period was discussed. Citing legal precedents, including the Quinn Logistics India Ltd. case and judgments from the Hon'ble Supreme Court, the Applicant emphasized the importance of resolving the matter within the stipulated timeline.
4. The Applicant specifically requested the exclusion of the period from the commencement of CIRP in November 2019 until the disposal of the application filed in December 2019.
5. The Tribunal, considering the circumstances and legal principles, granted an additional 90 days to complete the CIRP, making the total period 270 days from a specified date in May 2020. This decision aimed to ensure a time-bound resolution in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.
6. The Tribunal disposed of the application in line with the order issued, emphasizing the importance of serving a copy of the order to all relevant parties for compliance and awareness.

This detailed analysis of the judgment provides insights into the legal proceedings, the rationale behind the decision, and the application of relevant laws and precedents in addressing the issue of excluding time in the ongoing CIRP due to various challenges faced by the Applicant.