2019 (3) TMI 1189 - Tri - Insolvency and Bankruptcy

Counting the total days permissible for completion of CIRP - Completion of CIRP process - exclude certain period for the purpose of counting the total period of 270 days - Resolution professional seeking to exclude the period between the date of pronouncement of Admission order and date of communication of the order to IRP, i.e. from 25.3.2018 to 6.4.2018, for calculating the total period of 270 days of Corporate Insolvency Resolution Process - HELD THAT - The period between the order of admission and the actual date, i.e. the date when the Resolution Professional has taken the charge for completion of the CIRP should be excluded in counting the total days permissible for completion of CIRP. As relying on Velamur Varadan Anand v. Union Bank of India 2018 (6) TMI 1062 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI 12 days period, i.e. from 25.3.2018 to 6.4.2018 (from the date of admission till the date of communication of order to IRP) is excluded from counting the total period of CIRP.

Summary

Issues:
- Calculation of total period of Corporate Insolvency Resolution Process (CIRP)
- Exclusion of period between admission order and communication of order to Insolvency Resolution Professional (IRP)

Analysis:
The Resolution professional filed MA 1186/2018 seeking exclusion of the period between the date of admission order and the date of communication of the order to IRP for calculating the total period of 270 days of CIRP. The applicant argued that as per the law laid down by the NCLAT in previous cases, certain periods can be excluded for counting the total period of 270 days in unforeseen circumstances. The NCLAT had held in previous cases that the period between the admission order and the date when the Resolution Professional takes charge for completing the CIRP can be excluded from the total days permissible for completion of CIRP.

The Tribunal noted that the petition was admitted on 25.3.2018, and the certified copy of the order was issued on 6.4.2018. It was informed that only after obtaining the certified copy of the order, it was communicated to the IRP. Therefore, the period from the date of admission to the date of communication of the order to IRP was excluded in calculating the total period of CIRP. Relying on the case law and the principles established by the NCLAT, the Tribunal partly allowed MA 1186/2018 and excluded the 12 days period from 25.3.2018 to 6.4.2018 from counting towards the total period of CIRP.

In conclusion, the Tribunal's decision was based on the precedent set by the NCLAT regarding the exclusion of certain periods for counting the total period of CIRP. The exclusion of the period between the admission order and the date when the Resolution Professional takes charge was deemed appropriate, and the application was partly allowed, excluding the specified 12 days from the total period of CIRP.