9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (9) TMI 304 - Tri - Insolvency and BankruptcyExtension of CIRP period - extension of 90 days' time period beyond 180 days and also exclusion of a period of 99 days lost due to various reasons - HELD THAT - In this case, the commencement of CIRP was approved by this Adjudicating Authority and 180 days was completed on 31.03.2020. in view of the progress made in the CIRP and 97.5% voting shares of the CoC members in favour of the Resolution passed by the CoC in its 5th meeting held on 24.03.2020, this Adjudicating Authority hereby grants extension of CIRP period in the matter of M/s. KSK Mahanadi Power Company Limited beyond 180 days by further 90 days - It is further made clear that the computation of such extension of time period shall be computed in accordance with the Regulation 40C of IBBI (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020. This Adjudicating Authority deems it proper not to adjudicate upon the aspect of exclusion of period of 99 days at this point of time. However, Applicant/RP is at liberty to approach before this Adjudicating Authority at appropriate juncture of time, if desired so - Application disposed off.
Issues:
1. Extension of time period for Corporate Insolvency Resolution Process (CIRP) beyond 180 days. 2. Exclusion of specific periods from the CIRP timeline due to various reasons. Issue 1: Extension of time period for CIRP beyond 180 days: The Tribunal considered an Interlocutory Application seeking an extension of 90 days for the CIRP of a Corporate Debtor. The Application was filed under section 12(2) of the Insolvency and Bankruptcy Code, 2016. The CIRP had commenced on 03.10.2019, and the 180-day period ended on 31.03.2020. The CoC, with 97.5% voting shares, approved the extension in a meeting held on 24.03.2020. Consequently, the Tribunal granted an extension of 90 days for the CIRP period beyond the initial 180 days. The computation of the extended time period was to be done in accordance with Regulation 40C of the IBBI Regulations. Issue 2: Exclusion of specific periods from the CIRP timeline: Various periods were sought to be excluded from the CIRP timeline due to different reasons. These included: - Exclusion period due to Covid-19 lockdown as per Supreme Court Order: 7 days from 15.03.2020 to 21.03.2020. - Exclusion period due to lockdown in Telangana: 78 days from 22.03.2020 to 07.06.2020. - Period during which the IRP was directed not to conduct any CoC meeting: 6 days from 13.12.2019 to 18.12.2019. - Period for confirmation of the IBBI on replacement of the interim resolution professional with the Resolution Professional: 8 days from 09.06.2020 to 16.06.2020. The total excluded days amounted to 99 days. The Tribunal, while granting the extension of 90 days for the CIRP, did not adjudicate on the exclusion of the 99 days at that point. However, it allowed the Applicant/RP to approach the Tribunal at a later stage if needed. In conclusion, the Tribunal approved the extension of the CIRP period by 90 days, beyond the initial 180 days, for the Corporate Debtor. The exclusion of specific periods from the CIRP timeline was acknowledged, totaling 99 days, but a decision on this exclusion was deferred for future consideration. The judgment provided clarity on the extension process and left room for further review if required.
|
