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2020 (4) TMI 472 - AT - Insolvency and BankruptcyExtension of time in the Corporate Insolvency Resolution Process - third proviso of Section 12 inserted vide Gazette Notification dated 6th August, 2019 - HELD THAT - Section 12 has been amended which described time limit for completion of Corporate Insolvency Resolution Process which has been amended by addition of two more proviso to sub-section (3) of Section 12 which can be stated to be second and third proviso. This has come into force w.e.f. 16th August, 2019 vide SO No. 2953E - In terms of third proviso of sub-section (3) of Section 12, as we find that the Corporate Insolvency Resolution Process of the Corporate Debtor is pending and has not been completed within the period referred to in the second proviso, we hold that the Corporate Insolvency Resolution Process is to be completed within another period of 90 days from the date of commencement of Insolvency Bankruptcy Code (Amendment Act, 2019) i.e. w.e.f. 16th August, 2019. In view of the fact that the period has been extended for another 90 days in the present case in view of third proviso to sub-section (3) of Section 12, the impugned order is set aside and the Resolution Applicant is allowed to move before the Committee of Creditors and Resolution Professional and direct completing of the process within 90 days from the date of commencement of Insolvency Bankruptcy Code (Amendment Act, 2019) i.e. w.e.f. 16th August, 2019 - Appeal allowed.
Issues:
Extension of time in the Corporate Insolvency Resolution Process Analysis: The Appellate Tribunal dealt with an application filed by a Resolution Applicant seeking an extension of time in the Corporate Insolvency Resolution Process against a Corporate Debtor. The Applicant requested an exclusion of 54 days from the process period, permission to submit the Resolution Plan by a specific date, and challenged the decision of the Resolution Professional regarding dissenting voters. The Adjudicating Authority initially refused to exclude the 54-day period, prompting the Applicant to appeal. During the proceedings, it was argued that the Committee of Creditors had considered the relevant provisions of the Insolvency & Bankruptcy Code, specifically the third proviso of Section 12, which allowed for a 90-day extension. The Resolution Professional, representing the Respondents, also supported the extension of time for considering the Resolution Plan. The Tribunal noted the recent amendments to Section 12 of the Code, which introduced additional provisos regarding the time limit for completing the Corporate Insolvency Resolution Process. The third proviso stated that if the process was pending beyond the stipulated period, it must be completed within 90 days from the date of the Amendment Act. Considering the legislative changes and the circumstances of the case, the Tribunal set aside the Adjudicating Authority's order and granted the Resolution Applicant 90 days to complete the process from the date of the Amendment Act. The Tribunal directed the Applicant to approach the Committee of Creditors and the Resolution Professional to finalize the Resolution Plan within the specified timeframe. Furthermore, the Tribunal instructed the Committee of Creditors to make a decision on the Resolution Plan within 30 days and present the matter before the Adjudicating Authority for appropriate orders under Section 31 of the Insolvency & Bankruptcy Code. Ultimately, the appeal was allowed with the aforementioned directions, emphasizing compliance with the amended provisions and timely completion of the Corporate Insolvency Resolution Process.
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