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2020 (9) TMI 550 - Tri - Insolvency and BankruptcyExclusion of period of complete lockdown from the due date of first trench of payments allow Applicant to make first trench of payments within 30 (thirty) days from the date of order excluding the period of lockdown - excluison of time period of complete lock down from the due date of making final payments under Approved Resolution Plan allow applicant to make final payment within 90 (Ninety) days from the date of order excluding period of lockdown - HELD THAT - In the circumstances and since the facts are not disputed by the respondents and in view of the orders of the Hon'ble Supreme Court of India and the National Company Law Appellate Tribunal and the new Regulations issued by the Insolvency and Bankruptcy Board of India, the entire lockdown period i.e. from the date of imposition of lockdown by the Government of India till the reopening of National Company Law Tribunal, Chandigarh Bench, on regular basis, after removal of the lockdown, be excluded, from the compliances required to be made under order dated 13.03.2020 in CA No. 893/2019, passed by this Tribunal and in relation to the Corporate Insolvency Resolution Process. Application disposed off.
Issues involved:
1. Urgent hearing of IA No. 184/2020 in CP (IB) No. 30/Chd/Pb/2017. 2. Relief sought by the successful Resolution Applicant in IA No. 185/2020 regarding payments under the approved Resolution Plan. 3. Impact of COVID-19 lockdown on the implementation of the Resolution Plan. Issue 1: Urgent hearing of IA No. 184/2020 The Tribunal allowed the instant IA filed for seeking urgent hearing of IA No. 185/2020 in CP (IB) No. 30/Chd/Pb/2017, considering the circumstances and in the interest of justice. IA No. 184/2020 was disposed of after hearing the parties. Issue 2: Relief sought by the successful Resolution Applicant in IA No. 185/2020 The successful Resolution Applicant, as per the approved Resolution Plan, sought relief in IA No. 185/2020 due to the impact of the COVID-19 lockdown. The Applicant requested to exclude the lockdown period from the due dates of payments and allow flexibility in making payments. The Resolution Plan required payments to be made within specific timelines, and due to the lockdown, the Applicant faced challenges in opening an Escrow Account and arranging funds as planned. The Monitoring Committee was updated about the situation, and the Applicant sought necessary directions from the Tribunal. Issue 3: Impact of COVID-19 lockdown on the implementation of the Resolution Plan The lockdown due to the COVID-19 pandemic had a significant impact on the implementation of the Resolution Plan. The Government of India imposed a nationwide lockdown, affecting normal operations and movement. The Hon'ble Supreme Court and the National Company Law Appellate Tribunal issued orders regarding the extension of limitation periods and exclusions of lockdown periods for legal proceedings. The Insolvency and Bankruptcy Board of India also introduced special provisions related to timelines for corporate insolvency resolution processes during the lockdown. Considering these factors and the challenges faced by the Resolution Applicant, the Tribunal excluded the entire lockdown period from the compliance requirements of the Resolution Plan. IA No. 185/2020 was disposed of accordingly. This detailed analysis of the judgment covers the issues involved, the relief sought by the Resolution Applicant, and the impact of the COVID-19 lockdown on the Resolution Plan implementation, providing a comprehensive overview of the legal proceedings and decisions made by the Tribunal.
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