2021 (3) TMI 1309 - Tri - Insolvency and Bankruptcy

Seeking an exclusion of 17 days from the Corporate Insolvency Resolution Process - HELD THAT - In view of second proviso of Section 12(3) of the IBC, since CIRP shall mandatorily be completed within a period 330 days from the date of commencement including an extension of the period of corporate insolvency resolution process granted under this section and the time taken in the legal proceedings in relation to such resolution process of the corporate debtor, we are not inclined to exclude the period as prayed for by the applicant. The prayer to exclude the period of 17 days at this stage is hereby rejected - Application dismissed.

Summary

Issues Involved:
Exclusion of time period from Corporate Insolvency Resolution Process.

Detailed Analysis:
The judgment deals with an application filed by the Resolution Professional seeking an exclusion of 17 days from the Corporate Insolvency Resolution Process. The Resolution Professional argued that even though the Corporate Insolvency Resolution Process was initiated on a specific date, their appointment was made later, and they received intimation of their appointment after a delay. The Resolution Professional requested the exclusion of the period based on these grounds.

Upon considering the arguments presented by the Ld. Counsel for the applicant and examining the application, the Tribunal referred to the second proviso of Section 12(3) of the Insolvency and Bankruptcy Code (IBC). This section mandates that the Corporate Insolvency Resolution Process must be completed within 330 days from the date of commencement, including any extensions granted and time taken in legal proceedings related to the resolution process of the corporate debtor.

In light of the statutory provision outlined in the IBC, the Tribunal decided not to grant the exclusion of the 17-day period as requested by the applicant. Consequently, the prayer to exclude the specified period was rejected, and the application was dismissed. However, the Tribunal directed the Applicant to expedite the Corporate Insolvency Resolution process to ensure compliance with the statutory timeline provided under the IBC.

In conclusion, the judgment underscores the importance of adhering to the timelines prescribed under the IBC for the completion of the Corporate Insolvency Resolution Process. It highlights the significance of expediting the resolution process to ensure timely and efficient resolution of insolvency matters.