2018 (6) TMI 1062 - AT - Insolvency and Bankruptcy

Counting the period of corporate insolvency resolution process - Held that - In the present case, we find that after admission of the application the Resolution Professional was informed who took over the charge after 30 days of admission. In fact the case was admitted on 16th August, 2017 and on receipt the intimation, he took charge on 14th September, 2017. Having heard the learned counsel for the parties following the decision in Quinn Logistics India Pvt. Ltd. (2018 (6) TMI 904 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI) we direct the Adjudicating Authority to exclude 30 days for the purpose of counting the period of corporate insolvency resolution process and thereby allow the Resolution Professional to complete the corporate insolvency resolution process by 15th June, 2018.

Summary

Issues:
Calculation of period for Corporate Insolvency Resolution Process

Analysis:
The main issue in this judgment revolves around determining how the period of 180 days for Corporate Insolvency Resolution Process should be counted. Specifically, the question arises whether the count should start from the date of admission as per the provisions of the Code or from the date of knowledge of the Resolution Professional. The Tribunal referred to a previous case, "Quinn Logistics India Pvt. Ltd. vs. Mack Soft Tech Pvt. Ltd.," where it was established that certain periods can be excluded for counting the total period of 270 days in unforeseen circumstances. These circumstances include scenarios like if the insolvency resolution process is stayed by a court, if no Resolution Professional is functioning, or if there is a delay between the admission order and the Resolution Professional taking charge.

In the present case, it was noted that the Resolution Professional was informed 30 days after the application was admitted, and he took charge after 30 days of admission. Following the precedent set in the Quinn Logistics case, the Tribunal directed the Adjudicating Authority to exclude these 30 days from the calculation of the insolvency resolution process period, allowing the Resolution Professional to complete the process by a specified date.

Consequently, the impugned order passed by the Adjudicating Authority was modified to exclude the 30-day period and set a new deadline for completing the resolution process. The adverse observations made against the Resolution Professional were expunged and set aside. The appeal was disposed of with the aforementioned directions and observations.