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2020 (9) TMI 552 - Tri - Insolvency and BankruptcyExtension of time period of Corporate Insolvency Resolution Process (CIRP) - Section 40(2) of Corporate Insolvency Regulation Process and as per Section 12 of IBC 2016 - HELD THAT - The Hon'ble Supreme Court of India, Suo Motu Writ Petition 2020 (5) TMI 418 - SC ORDER has held that a period of limitation in such proceedings, irrespective of limitation prescribed under the general law or Special Laws whether condonable or not shall stand extended w.e.f. 15th March 2020 till further order(s) to be passed by this Court in present proceedings. Also, Notification published by Insolvency and Bankruptcy Board of India dated 29.03.2020, (Insolvency Resolution Process for Corporate Persons) (Third Amendment) Regulations, 2020 stated that the period of lockdown imposed by the Central Government in the wake of COVID-19 outbreak shall not be counted for the purposes of the time-line for any activity that could not be completed due to such lockdown, in relation to a corporate insolvency resolution process. Thus, this Tribunal extend the time limit for CIRP till 29.03.2020. After 29.03.2020 the special provision relating to the time line issued vide notification dated 29.03.2020 will apply till the lockdown lifting notification is issued by the Government of India. Application allowed.
Issues:
Extension of time period for Corporate Insolvency Resolution Process (CIRP) under IBC 2016 due to delays caused by court orders and lockdown imposed during COVID-19 outbreak. Analysis: 1. Extension of Time Period for CIRP: The Resolution Professional filed MA/68/KOB/2020 seeking an extension of the time period for Corporate Insolvency Resolution Process (CIRP) under Section 40(2) of Corporate Insolvency Regulation Process and Section 12 of IBC 2016. The application was made due to delays caused by court orders and subsequent disruptions due to the COVID-19 pandemic. 2. Background and Court Orders: The CIRP was initiated by Federal Bank Ltd under Section 7 of the Insolvency and Bankruptcy Code, which was admitted by the Tribunal. However, the proceedings were affected by orders from the High Court of Kerala and the NCLAT, leading to a delay in the resolution process. 3. Impact of COVID-19 and Legal Provisions: The Resolution Professional highlighted the impact of the COVID-19 pandemic on the CIRP timeline and requested an extension of 90 days to complete the process. The Tribunal considered the Supreme Court's order extending limitation periods due to COVID-19 and the amendment made under Section 40C by the Insolvency and Bankruptcy Board of India, which excluded the lockdown period from the CIRP timeline. 4. Decision and Rationale: After considering the legal provisions and the RP's submissions, the Tribunal granted the extension of the time limit for CIRP until 29.03.2020. It was further directed that the special provision regarding the timeline, as per the notification dated 29.03.2020, would apply until the lockdown is lifted by the Government of India. This decision aimed to address the delays caused by external factors and ensure a fair resolution process. In conclusion, the judgment addressed the challenges faced in the CIRP due to court orders and the COVID-19 pandemic, providing a legal framework for extending the timeline and ensuring the continuation of the resolution process in a fair and effective manner.
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