2021 (5) TMI 611 - Tri - Insolvency and Bankruptcy

Seeking extension of time allowed to him to liquidate the Corporate Debtor due to time lost on account of Covid pandemic - section 60(5)(c) read with Regulation 47A of the Insolvency and Bankruptcy Board of India (Liquidation Process) regulations, 2016 - HELD THAT - The relevant provisions of Section 60(5)(c) of the I.B. Code, 2016 read with Regulation 47A of the of Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 are examined and exclusion of time for the period 25.03.2020 to 31.13.2020 from the time allowed to complete the liquidation process is allowed as prayed for. Application disposed off.

Summary

Issues:
1. Extension of time for liquidation process due to Covid pandemic.
2. Admission of claim filed by financial stakeholders after the stipulated deadline.
3. Exclusion of time period due to Covid-19 lockdown.
4. Compliance with regulations and submission of reports.
5. Application for dissolution of corporate debtor.

Extension of Time for Liquidation Process:
The application filed by the present Liquidator sought an extension of time to liquidate the Corporate Debtor due to time lost during the Covid-19 pandemic. The Applicant requested exclusion of time for the period 25.03.2020 to 31.12.2020 from the time allowed to complete the liquidation process. The Tribunal examined the relevant provisions of Section 60(5)(c) of the I.B. Code, 2016 and Regulation 47A of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. Consequently, the Tribunal allowed the exclusion of the mentioned time period as requested.

Admission of Claim by Financial Stakeholders:
The Liquidator received a claim from financial stakeholders after the stipulated deadline for submission of claims had expired. Despite the unclear provision under the liquidation proceedings regarding the admission of claims filed after the deadline, the Liquidator provisionally admitted the claim for the interest of justice. An application was made under Regulation 31(3) for permission to modify the list of stakeholders and incorporate the claims filed by the financial stakeholders, which was allowed by the Adjudicating Authority.

Exclusion of Time Period Due to Covid-19 Lockdown:
Regulation 47A was inserted under IBBI (Liquidation Process) Regulations to exclude the Covid-19 lockdown period from the computation of the time-line for any task that could not be completed in relation to any liquidation process. The Tribunal took into consideration the order passed by the National Company Law Appellate Tribunal on 30.03.2020, which excluded the Covid-19 related lockdown period for calculating timelines under the Code. The Tribunal acknowledged the impact of the pandemic on the liquidation process and allowed the exclusion of the specified time period.

Compliance with Regulations and Submission of Reports:
The Liquidator had complied with the regulations by making public announcements, submitting reports, and taking necessary steps for distribution of assets to stakeholders. The Liquidator regularly filed quarterly progress reports as required under Regulation 15 within the respective due dates. The Tribunal noted the steps taken by the Liquidator in compliance with the regulations and directives.

Application for Dissolution of Corporate Debtor:
Following the directions contained in the order of 08.02.2021, the Liquidator was directed to make the application for dissolution of the Corporate Debtor by a specified date. The Liquidator declared that the matter regarding the application was not pending before any tribunal or authority. The Tribunal admitted the application and disposed of it accordingly on the specified date.

In conclusion, the Tribunal addressed the issues raised by the Liquidator regarding the extension of time, admission of claims, exclusion of Covid-19 lockdown period, compliance with regulations, and application for dissolution of the corporate debtor, providing detailed analysis and granting appropriate relief as per the relevant legal provisions and circumstances.